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Between the formerly frozen SNAP benefits, higher grocery prices and rising unemployment, times are tough for pretty much everyone right now.
But, apparently, things are getting especially difficult for Coloradans.
Colorado was among the poorest-performing states in multiple national economic rankings released over the last month. It placed as the third-worst state for increasing household debt, the sixth-worst state for increasing credit card delinquency, and the number-one worst major metro area for rising inflation, according to reports from the personal finance website WalletHub.
“A big increase in a state’s average household debt can be a sign that residents are struggling financially,” says WalletHub analyst Chip Lupo. “Inflation may be pushing people to borrow more just to afford necessities.”
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The Denver metro area had the highest overall change in the Consumer Price Index among 23 major metropolitan statistical areas analyzed in the report released on October 24. The CPI measures the average change in the price of goods and services over time.
The Denver metro’s CPI increased by 1 percent in two months (the highest short-term jump nationwide), and 3.1 percent in one year (the seventh-highest long-term jump), according to the WalletHub report.
“What U.S. consumers see is not inflation per se, but the cumulative effect of past inflation,” says Daniele Tavani, economics department chair at Colorado State University, in an analysis within the report. “Prices have risen in the aftermath of the COVID-19 shock and have not come down. So, while inflation is not as high as it was, U.S. consumers are still feeling its effects in their daily lives in terms of higher overall prices.”
Tavani names federally imposed tariffs as one of the primary factors driving current inflation rates, though he says local factors like housing costs, food prices and energy prices are also major drivers.
Coloradans appear to be relying on borrowing to deal with the rising costs.
Colorado had the third-highest increase in average household debt between the second and third quarters of 2025, according to the report released on November 6. The average household debt rose by $832, hitting $245,629, based on data from TransUnion and the Federal Reserve.
Colorado also had the sixth-highest increase in credit card delinquency between the first and second quarters of 2025, according to the report released on November 5. The state’s share of credit cards that are delinquent — meaning payments are at least thirty days overdue — hit 16.85 percent in mid-2025. That’s an increase of 28.45 percent from the prior quarter, based on WalletHub’s proprietary user data.
Experts note that rankings of different metrics reflect different aspects of a state’s economic strength.
For example, U.S. News & World Report grades Colorado as having the sixth-best overall economy in the nation, based on each state’s business environment, labor market and economic growth. That report, in addition to rankings from Forbes and Site Selection Magazine, places Colorado among the top states for business environments.
