Money Matters - Cities Paying Off the Most Household Debt

With U.S. household debt reaching approximately $18.79 trillion, personal finance company WalletHub has released its report on the Cities Paying Off the Most Household Debt, based on newly released data from the Federal Reserve.
 

Largest Decrease		Smallest Decrease
1. Santa Clarita, CA		173. Buffalo, NY
2. Fremont, CA		174. Akron, OH
3. San Jose, CA		175. New Haven, CT
4. Gilbert, AZ		176. Memphis, TN
5. Irvine, CA		177. Jackson, MS
6. Rancho Cucamonga, CA		178. Newark, NJ
7. Huntington Beach, CA		179. Toledo, OH
8. Chula Vista, CA		180. Cleveland, OH
9. Scottsdale, AZ		181. Detroit, MI
10. Pearl City, HI		182. Des Moines, IA

National Stats

• Q1 Results: Total household debt decreased by $339 billion during Q1 2026. That is 351% more than the decrease in Q1 2025.
   
• Household Average: The average household owed a total of $155,607 at the end of Q1 2026, which is $14,804 below the all-time high.
   
• Total Debt-to-Deposits Ratio: The ratio of total household debt to deposits indicates consumers are in good shape, as it's still below pre-Covid levels and roughly 48% lower than its early-2000s peak.
   
• Total Debt-to-Assets: The ratio between total household debt and assets, at 8.97%, continues to be at a very healthy level.

Key takeaways and WalletHub commentary are included below in text and video format. Feel free to use the provided content as is or edit the raw files as you see fit.

Please let me know if you have any questions or if you would like to arrange a phone, video or in-studio interview with one of WalletHub’s experts.

 

“A large decrease in the average resident’s debt in a city is a great sign – it shows that people are not only keeping up with their payments but also cutting back on borrowing. When it comes to Santa Clarita, Fremont, and San Jose, CA, the three cities with the largest decreases, residents are fairly wealthy and responsible with credit, so their large debt decreases aren’t too surprising.”
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“Santa Clarita residents paid off the most household debt in the first quarter of 2026, with the average dropping by $9,237. This brought the average household debt in Santa Clarita to roughly $495,700, which is also the highest total of any city.”

- Chip Lupo, WalletHub Analyst


More From WalletHub

• 2026 Household Debt Report
• States Where Consumers Are Adding the Most Debt
• States With Largest and Smallest Credit Card Debt Increases
• States Adding the Most Mortgage Debt
• States Where Auto Loan Debt Is Increasing the Most