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.
Three California cities saw the largest decrease.
“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.”
Here’s WalletHub’s methodology, what the report found for the cities with the largest and smallest household debt decreases, and how California cities rank.
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, household debt, and household debt decrease.
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, household debt, and household debt decrease.
California rankings on WalletHub’s report
Here is how California 29 cities included WalletHub’s analysis ranked, along with their household debt, and household debt decrease.
This article originally appeared on Palm Springs Desert Sun: 3 California cities lead US in paying off household debt, report finds
Reporting by Daniella Segura, USA TODAY NETWORK / Palm Springs Desert Sun
USA TODAY Network via Reuters Connect
