(Image Credit: IMAGN) 2/23/08 1:22:06 PM -- Tomah, WI --Credit Cards -- Christie Carlson, 34, goes shopping at the Wal-Mart with her two of her children, Tanner, 5 (in cart) and Seth, 7, and boyfriend Mike Serns. Carlson, 34, who says that as living costs -- including gas, groceries -- rise, she's been forced to use her credit cards to make ends meet. As the economy gets worse, she worries that she'll have to rely even more so on plastic. Credit cards are keeping Americans afloat like never before. As the economy worsens, dragging down retirement portfolios and salaries, consumers appear to be turning more than ever before to credit cards to pay for basic necessities. One telltale sign of this trend: While credit card debt is ballooning, consumers are pulling back on discretionary items like furniture and electronics and spending more on groceries and gas, according to government data. A growing number of people are even cashing out on their credit cards and using this money to pay overdue mortgage bills, say credit counselors. It?s not just blue-collar workers, but doctors and professionals who are being hit by the economic squeeze and turning to plastic to make ends meet. A growing body of research shows that consumers are even paying their credit card bills before their mortgage bills and car bills, in a reversal from the historic trend. Photo by Andy Manis, Freelance ORG XMIT: AM 33572 Credit 2/23/2008 Xxx Credit Cards Cover005 Jpg Wi
San Diego, California – With Americans collectively burdened by a staggering $1.35 trillion in credit card debt last year, a new study reveals significant disparities in household debt levels across the country, with California cities topping the list.
A comprehensive analysis conducted by WalletHub, a personal finance company, has identified Santa Clarita, California, as the city with the highest credit card debt per household in the United States so far this year. The study, which analyzed data from TransUnion across 181 cities, paints a stark picture of the financial challenges facing residents in specific regions.
Notably, six of the top ten cities with the highest household debt are located in California: Santa Clarita (No. 1), Chula Vista (No. 2), Fontana (No. 4), Riverside (No. 5), Rancho Cucamonga (No. 7), and Glendale (No. 10). The other cities rounding out the top ten are New York City (3), Pearl City, Hawaii (6), Chesapeake, Virginia (8), and Gilbert, Arizona (9). These cities exhibit total household debt ranging from approximately $18,500 to $22,700.
In contrast, Lewiston, Maine, boasts the lowest credit card debt per household, with an average of $9,500. Toledo, Ohio, follows closely behind with $9,600. The cities with the lowest credit card debt are predominantly located in the Midwest, including Iowa, Wisconsin, and Ohio. The remaining cities in the bottom ten include Madison, Wisconsin (3), Cleveland, Ohio (4), Akron, Ohio (5), Cedar Rapids, Iowa (6), Milwaukee, Wisconsin (7), Des Moines, Iowa (8), Rochester, New York (9), and Fort Wayne, Indiana (10).
The WalletHub study underscores the growing financial strain on American households, particularly in regions with high living costs. This data aligns with a recent Bankrate survey, which revealed that 33% of U.S. adults have more credit card debt than emergency savings. While this figure represents a slight decrease from 36% in 2024 and 2023, it remains significantly higher than the 22% reported in 2022.
Bankrate’s 2025 Emergency Savings Report highlights the ongoing vulnerability of many Americans to unexpected financial shocks. The persistent trend of credit card debt outpacing emergency savings suggests that many households are struggling to build a financial safety net.
The findings from both WalletHub and Bankrate emphasize the need for greater financial literacy and responsible credit management. The concentration of high debt levels in specific cities also indicates that local economic conditions and cost of living play a significant role in household financial stability.
