Southern California is home to six of the top 10 U.S. cities with the largest average household credit card debt, according to a new study published on March 13 by WalletHub.
“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,” said John Kiernan, WalletHub editor. “Many people’s debt is in danger of becoming unsustainable, which means their financial future is in jeopardy.”
In first place this year was Santa Clarita, about 30 miles north of Los Angeles, where households have an average of $22,753 in credit card debt, according to the report.
About 130 miles further down the coast, Chula Vista was ranked second with an average household credit card debt of $20,567.
Fifty miles east of Los Angeles, Fontana reached fourth place, with the average household credit card debt at $18,982.
Riverside, east of Los Angeles, came in fifth with an average household credit card debt of $18,719, followed by Rancho Cucamonga with an average of 18,653.
Glendale, about 9 miles north of Los Angeles, was in 10th place with an average credit card debt of $18,560.
The four non-California cities in the top 10 were New York City; Pearl City, Hawaii; Chesapeake, Virginia; and Gilbert, Arizona.
The Southern California cities of Moreno Valley (11th), Santa Ana (12th), Oxnard (13th), Ontario (16th), Los Angeles (17th), and Anaheim (19th) placed in the top 20.
Laura Manyweather, an adjunct business professor at Los Angeles Trade-Technical College, said the rising prices of groceries, gas, and utilities contribute to the high levels of credit card debt in certain cities.
“People make just enough to pay their rent or mortgage,” Manyweather told WalletHub. “The credit cards allow individuals to pay bills and not use their liquid cash.”
The expert said financial literacy should be taught to people early in life before the damage is done.
Leela Varadharajan, a finance instructor at Oregon State University, acknowledged the use of credit cards to meet the high cost of living but said that regional culture also plays a role.
“Some cities have a culture of high consumer spending and extravagant living style leading to increased reliance on credit,” she said.
Americans accumulated about $1.21 trillion in credit card debt at the end of 2024, rising by $45 billion in the last three months of the year, according to the Federal Reserve Bank of New York.
A housing development in Santa Clarita, Calif., on Sept. 8, 2023. Santa Clarita was named the top city in the United States for personal credit card debt, with the average household debt of $22,753, according to the latest report by WalletHub. (Mario Tama/Getty Images)
Credit card debt is just one facet of overall household debt, which has reached $18.04 trillion. That included $12.61 trillion in mortgage balances at the end of last year, the bank reported. Auto loans came in at $1.66 trillion.
WalletHub analyzed data from more than 180 cities in the United States using the latest consumer finance data from TransUnion, a major credit reporting agency.
