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The city of Denver, Colorado is no exception to the rising levels of debt among Americans. According to a 2019 report from Experian, the average credit score in Denver was 662, which is lower than the national average of 675. This indicates that Denver residents are more likely to carry high levels of debt and are at greater risk of defaulting on payments and damaging their credit scores.
in comparison to the National average of $703
Credit Data from February 2022**
in comparison to the National average of $10,940
Credit Data from February 2022*
in comparison to the National average of 4%
Credit Data from February 2022*
The most common types of debt in Denver, Colorado are credit cards, mortgages, and auto loans. According to the latest Experian report, the average debt in Denver for credit cards is $7,443 – higher than the national average of $6,194. Likewise, the average mortgage debt in Denver is $231,689 compared to the national average of $203,163.
Given the high levels of debt in Denver, it is important for residents to make sure they understand their current financial situation and develop a plan to pay down their debts. Seeking out credit counseling services or working with a financial advisor can be helpful for those who are struggling to manage their debt.
The city of Denver, Colorado faces some unique financial challenges that can make it difficult to manage debt. One of the biggest issues is the high cost of living in Denver, which has risen considerably over the past decade. In 2019, Denver ranked as the 14th most expensive city in the U.S., and according to recent reports, overall housing costs in Denver have risen by more than 6% since 2017.
With the financial pressures that come along with living in such an expensive city, it’s important for Denver residents to take steps towards managing their debt and improving their credit scores. This can include creating a budget, paying down high-interest debts first, using automatic payments to stay on track, and seeking professional financial advice. By being proactive about paying down debt and improving their credit scores, Denver residents can find greater financial security and peace of mind.
Debt-to-income (DTI) ratios vary across cities, states and even countries. However, according to a 2019 report from Experian, the average DTI ratio in Denver is higher than the national average. Specifically, the report found that 24% of Denver residents have DTIs above 40%, compared to an overall national average of 22%. So while Denver’s debt load is not out of line with other cities or states, it does seem to be slightly higher than the national average.
The good news is that, even with higher-than-average levels of debt in Denver, Coloradans still have plenty of resources available to help manage their finances and get out from under the burden of debt. Organizations like Colorado Legal Services and Money Management International offer free financial counseling services that can help individuals create a budget, negotiate lower payments or interest rates, and even consolidate multiple debts into one lower-interest loan.
Debt levels in a city can vary due to factors such as housing costs, local economies, and individual spending habits. Cities with higher housing costs tend to have higher debt levels. Cities with more job opportunities and higher wages tend to have lower debt levels. Individual spending habits can also cause differences in debt levels between cities.
The average credit utilization rate for residents in Denver, Colorado is 30%, according to a recent Experian Report. Credit utilization refers to the ratio of credit card debt to available credit, and it is an important factor when calculating a credit score. When a person’s credit utilization rate is high, it can negatively impact their credit score because it suggests they are overusing their available credit. To keep credit utilization low, individuals should work to pay down any existing high-interest debt and avoid taking on additional credit card debt. Additionally, using automatic payments to ensure bills are paid in full and on time each month can help reduce the risk of missing a payment or going into default.
In Denver, Colorado, there are numerous organizations and initiatives available to help residents improve their credit scores and financial literacy. One of the most prominent is the Denver Asset Building Coalition (DABC). This coalition is comprised of local organizations such as the Mile High United Way and the Colorado Division of Housing that work together to promote financial security and build wealth for citizens in the Denver area. DABC offers an array of services for residents, including credit counseling and financial education classes. Additionally, individuals can access resources on their website to learn about budgeting and savings strategies.
Ultimately, with the right strategy and a little bit of help from local organizations like DABC, individuals living in Denver are well-equipped to pay down debt and improve their credit scores. By creating a budget, paying off high-interest debts first and seeking professional advice, individuals can gain greater control over their finances and escape the burden of debt. With resources like these available in Denver, Colorado, citizens have the potential to take charge of their financial security and future.
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