Inflation gobbles up Coloradans' household income

Margaret Jackson
(Dawn McDonald on Unsplash)

By Margaret Jackson / NewsBreak Denver

More than half of Colorado residents — 53% — are having a tough time paying their usual household expenses, and rising inflation is the culprit, according to a report from QuoteWizard by LendingTree LLC.

Inflation is up 7.5% since last year, but prices for food and fuel have gone up even more.

It’s more challenging to avoid inflation during this cycle than it was previously because the cost of everything increased, said Nick VinZant, senior research analyst with QuoteWizard by LendingTree.

“It’s been food and gas, but you have to go to work and you have to eat,” he said. “Other times when there’s been inflation, you might have been able to substitute beef with chicken, but in this case, it’s everything.”

Key findings for Colorado include:

  • 41% of residents have slight to moderate difficulty paying for household expenses.
  • 12% of residents are having a tough time paying for household expenses.
  • The number of people having a very difficult time has increased 41% since last June.

Tightening your belt

Reining in spending was how people coped with inflation in the past, but this time people already live on the margin, so that strategy isn’t as effective, VinZant said.

Still, there are a few strategies that can help. You can talk to your creditors about consolidating your debts or work toward paying off your biggest debts first.

“What do you do when there’s nothing left to do — make more money?” VinZant said. “That’s not a real answer.”

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I'm a Denver-based business writer with expertise in commercial and residential real estate as well as general business news.

Denver, CO

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