Currently, Americans owe around $1.35 trillion in credit card debt, and the personal finance website WalletHub has just released its report on the Cities With the Highest & Lowest Credit Card Debts. This report highlights where individuals are facing the greatest financial challenges and follows WalletHub's recent Credit Card Debt Study.
| Highest Household Credit Card Debt | Lowest Household Credit Card Debt |
| 1. Santa Clarita, CA | 172. Fort Wayne, IN |
| 2. Chula Vista, CA | 173. Rochester, NY |
| 3. New York, NY | 174. Des Moines, IA |
| 4. Fontana, CA | 175. Milwaukee, WI |
| 5. Riverside, CA | 176. Cedar Rapids, IA |
| 6. Pearl City, HI | 177. Akron, OH |
| 7. Rancho Cucamonga, CA | 178. Cleveland, OH |
| 8. Chesapeake, VA | 179. Madison, WI |
| 9. Gilbert, AZ | 180. Toledo, OH |
| 10. Glendale, CA | 181. Lewiston, ME |
To see the full report, please visit:
https://wallethub.com/edu/
“It’s hard to look at a number like $1.35 trillion in credit card debt and truly understand the impact it has on individual Americans. Comparing the residents of cities based on how much debt they’re adding at the household level and what their average balance is puts things in perspective. Many people’s debt is in danger of becoming unsustainable, which means their financial future is in jeopardy.”
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“Santa Clarita, CA, is the city with the highest average household credit card debt, at $22,753. That adds up to a total of over $1.7 billion for all of the city’s residents collectively. However since Santa Clarita has a much higher median income than the national average, it’s likely that people simply have big credit card limits and can afford to spend a lot.”
- John Kiernan, WalletHub Editor
Expert Commentary
What factors contribute to the high levels of credit card debt in certain cities?
“The rising prices of groceries, gas and utilities. People make just enough to pay their rent or mortgage. The credit cards allow individuals to pay bills and not use their liquid cash.”
Dr. Laura H. Manyweather – Adjunct Professor, Los Angeles Trade-Technical College
“In major metropolitan areas such as San Francisco, New York City, and Miami, the high cost of housing, transportation, and healthcare places significant pressure on household budgets. Many residents are compelled to rely on credit cards for everyday expenses, resulting in revolving debt cycles that can be difficult to break… Cities with a large share of gig, freelance, or seasonal workers – such as Las Vegas, which depends heavily on tourism, and Orlando – experience significant income fluctuations. This volatility makes it hard for many to maintain a steady financial footing. In months when work is scarce, residents often turn to credit cards to manage cash flow gaps, thereby increasing overall debt levels… Urban areas that face persistently high unemployment or underemployment – examples include Detroit and Cleveland – are also more prone to higher credit card balances. In these cities, financial instability forces residents to rely on credit as a temporary lifeline to cover essential expenses, inadvertently leading to a build-up of debt that becomes difficult to repay… The cultural fabric of certain cities encourages a lifestyle centered on discretionary spending. In cities…where there is a strong emphasis on entertainment, luxury, and social status, residents often indulge in high-end dining, shopping, and leisure activities. This consumer-driven environment can lead to a pattern of overspending and reliance on credit cards to finance a lifestyle that exceeds their income levels.”
Alex Dontoh - Professor; Academic Director, Master of Science in Accounting - New York University
What role should local banks play in helping residents manage their credit card debts?
“Local financial institutions, including banks and credit unions, are in a unique position to assist their communities with responsible debt management… Institutions like the Digital Federal Credit Union (DCU) in Massachusetts have taken proactive steps by offering free workshops and personalized financial counseling sessions. Such services empower residents to better understand their credit profiles, manage their budgets, and develop strategies for debt repayment, all of which can contribute to reducing overall credit card balances… Banks can also help by offering products that are designed with consumer protection in mind. For instance, secured credit cards or low-interest alternatives provide a safer borrowing option for those who may be at risk of falling into high-interest debt traps. This responsible approach to credit product offerings encourages better long-term financial behavior among customers… In regions where community focus is strong – such as in Minnesota and Colorado – credit unions often provide competitive balance transfer rates and debt consolidation loans. These products can simplify debt management for residents by allowing them to consolidate multiple high-interest debts into a single, more manageable payment plan, often at a lower interest rate.”
Alex Dontoh - Professor; Academic Director, Master of Science in Accounting - New York University
“Banks will not help residents because they make money from their customers’ credit card debt.”
Dr. Laura H. Manyweather – Adjunct Professor, Los Angeles Trade-Technical College
How does financial literacy education impact credit card debt levels in various cities?
“Financial literacy must be taught early in life. Financial literacy should not be taught once the damage is done. Financial literacy should be proactively taught and not reactionary. This will impact the credit card debt in various cities.”
Dr. Laura H. Manyweather – Adjunct Professor, Los Angeles Trade-Technical College
“Financial literacy is a critical factor in determining how effectively residents manage credit card debt… In cities where robust financial education programs are in place…residents tend to have a better grasp of managing personal finances. This early and ongoing education helps individuals understand the implications of high-interest rates, the pitfalls of minimum payment traps, and the importance of budgeting, leading to lower overall credit card debt… Conversely, in cities with less emphasis on financial education…residents may lack critical financial skills. This gap can result in mismanaged credit, where individuals might not fully understand the long-term impact of carrying high balances or the compounding effect of interest rates. Without adequate financial guidance, these populations are more susceptible to falling into debt cycles… Initiatives by local governments and nonprofits, such as New York City’s Office of Financial Empowerment, have shown promising results by providing workshops, one-on-one counseling, and accessible online resources. However, the effectiveness of these programs depends on both accessibility and active community engagement. In cities where these programs are well-funded and widely accessible, we often see a more financially savvy populace with lower per capita credit card debt.”
Alex Dontoh - Professor; Academic Director, Master of Science in Accounting - New York University
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