A new WalletHub analysis determined which cities across the country are paying off the most household debt, which currently stands at $18.79 trillion.
“Mortgages represent the bulk of this debt, but other sources — such as student and auto loans, credit cards, and personal loans — also contribute significantly to the national total,” according to WalletHub.
For the first quarter of 2026, WalletHub reported a $339 billion inflation-adjusted decline in household debt nationwide. This trend was also seen in the 182 cities WalletHub analyzed to determine which cities are paying off the most household debt.
“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,” Chip Lupo, an analyst with WalletHub, said in a news release.
Which State Dominated the Rankings?
Three California cities — Santa Clarita, Fremont and San Jose — saw the largest decrease in household debt. Four additional California cities rounded out the Top 10, bringing the Golden State’s total to seven.
“When it comes to Santa Clarita, Fremont, and San Jose … residents are fairly wealthy and responsible with credit, so their large debt decreases aren’t too surprising,” Lupo said.
In its overall analysis, however, WalletHub found that “the rate of debt decline varies significantly between cities.”
WalletHub’s Methodology
WalletHub assessed 182 cities using data on consumers’ finances from TransUnion and the Federal Reserve to determine which had the largest and smallest decreases in household debt from Q4 2025 to Q1 2026.
Cities With the Largest Household Debt Decrease
Here are the cities in WalletHub’s report with the largest household debt decrease, along with their rankings, total household debt and debt decrease.
- Santa Clarita, California (1): $495,675 | -$9,237
- Fremont, California (2): $392,495 | -$7,314
- San Jose, California (3): $334,349 | -$6,230
- Gilbert, Arizona (4): $295,093 | -$5,499
- Irvine, California (5): $294,075 | -$5,480
- Rancho Cucamonga, California (6): $288,540 | -$5,377
- Huntington Beach, California (7): $286,988 | -$5,348
- Chula Vista, California (8): $286,834 | -$5,345
- Scottsdale, Arizona (9): $283,087 | -$5,275
- Pearl City, Hawaii (10): $278,638 | -$5,192
Cities With the Smallest Household Debt Decrease
Here are the cities in WalletHub’s report with the smallest household debt decrease, along with their rankings, total household debt and debt decrease.
- Des Moines, Iowa (182): $2,738 | -$51
- Detroit, Michigan (181): $42,657 | -$795
- Cleveland, Ohio (180): $54,258 | -$1,011
- Toledo, Ohio (179): $60,356 | -$1,125
- Newark, New Jersey (178): $63,019 | -$1,174
- Jackson, Mississippi (177): $68,551 | -$1,277
- Memphis, Tennessee (176): $70,589 | -$1,315
- New Haven, Connecticut (175): $72,599 | -$1,353
- Akron, Ohio (174): $73,572 | -$1,371
- Buffalo, New York (173): $73,757 | -$1,374
USA TODAY Network via Reuters Connect
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