These Cities Have The Highest Credit Card Debt

In this photo illustration, Visa credit cards are displayed on February 07, 2024 in San Anselmo, California. Some California cities saw credit card spending that far outranked the U.S. average.

Some cities are experiencing far higher credit card debt than the national average.

In a new WalletHub report, Californians were found to take on high debt compared to the rest of the U.S.

Across the country, Americans owe $1.26 trillion in credit card debt, which would translate to roughly $10,500 per household. But not all cities or states face the same type of debt crisis.

California in particular showed a notable amount, taking up four of the top five debt spots nationwide.

Santa Clarita was number one, with a $21,836 credit card debt per household, and Chula Vista was not far behind, at $20,920.

New York City was the third city on the list, perhaps not surprisingly, as the cost of living also reaches far beyond the national average. But Fontana $18,843) and Rancho Cucamonga ($18,549) took up the remaining spots, indicating California as a whole might be experiencing a deeper problem when it comes to debt.

But WalletHub analyst Cassandra Happe cautioned against jumping to the conclusion that residents in these cities were struggling more financially than in other areas.

"Some of the cities where households owe the most credit card debt, like Santa Clarita and Chula Vista, CA, have high median incomes, high debt payoff rates and low delinquency rates," Happe said in the report.

"This indicates that residents may simply have high credit card limits and can afford to borrow more. Other cities, like New York, have high average credit card debts driven more by financial struggles, which we can see in the number of people who are in financial distress or who are delinquent on their debt."

Santa Clarita, for instance, is the city that had the most paid off household debt in the first quarter of 2024, and incomes tend to be far higher than the U.S. average. That means many might have higher credit limits and can spend a lot on their credit cards before paying it off in the next billing cycle.

Chula Vista also has relatively few people in true financial distress, according to WalletHub, and it's 67 out of 100 of the largest American cities for debt delinquency.

"While the cities at the top of the highest credit card debt list do tell a story, it's not the full one," Alex Beene, financial literacy instructor at the University of Tennessee at Martin, told Newsweek. "Multiple cities in California and New York City seeing the highest levels of credit card debt may seem like an indictment on how expensive they are to live in, but the reality is these locations also benefit from some of the highest median incomes in the country."

It's more troubling when cities have higher credit card debt loads, while still falling behind the national income average.

"Comparing the over two billion in collective debt people in Scottsdale, Arizona, carry to the over two billion dollars the people in New Orleans have on their cards, you have to remember that the average salary is significantly lower in New Orleans and thus makes the ability of getting out of that debt that much harder," said Beene.

"Ultimately, it's all based on income. If your income doesn't match the high debt levels you're taking on, you're heading for a financial catastrophe, regardless of where you are. It's time to cut back and pay off what debt has piled up."

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