Household debt in the U.S. is extremely high, totaling $17.7 trillion. This debt includes everything a household owes, including car payments and mortgages, as well as student loans and other debt.
During the first quarter of 2024, the amount of household debt went down by about $135 billion. People in certain cities have gotten rid of much more debt than the average household. According to WalletHub, these are the cities where people have gotten rid of the burden of debt the most and the least.
Most Debt Reduction
It’s hard to pay off household debt, but many people put in a lot of work to do so. Getting rid of debt means more financial freedom and less interest to pay. Some cities have paid off an impressive amount of this debt in quarter one of 2024.
1. Santa Clarita, California
This city has gotten rid of the most household debt with a stunning reduction per household of $3,687. The residents of this city have an average of more than $444,000 in debt, the highest amount on this list.
2. Fremont, California
California looms large on this list of debt reduction, and Frmont is high on the list. Its households have an average of about $362,000. The average debt reduction during Q1 was $3,001.
3. San Jose, California
The average household debt in this city is more than $313,000. Residents here have worked hard to reduce their debt, getting rid of $2,599 on average in just three months.
4. Chula Vista, California
Households in this city are struggling with a debt load that averages about $285,000. The residents of Chula Vista were able to pay down $2,366 of their debt on average, totaling more than $196 million in total.
5. Gilbert, Arizona
The only city outside of California that can pay off a high amount of debt, Gilbert’s people have put a lot of effort into debt reduction. With an average household debt of $284,000, they’ve each managed to pay off an average of $2,359.
6. San Francisco, California
This is one of the most expensive places to live in the country, so it’s no wonder that households have an average debt of $283,000. Residents of the City by the Bay have managed to pay off $2,347 per household.
7. Huntington Beach, California
Residents here are trapped by more than $282,000 in household debt. However, they’re making great progress at paying it off. In Q1, they got rid of more than $2,344 of that debt.
Least Debt Reduction
In some cities, the amount of debt carried is far lower than in the top cities, reducing debt. With their smaller amount of debt, they have paid off smaller total amounts during the first quarter.
1. Detroit, Michigan
People in Detroit have the least amount of household debt at just $40,944 per household. Given this small amount of debt, it’s no wonder that residents of the Motor City paid off just $339.
2. Cleveland, Ohio
Residents of Cleveland have just $54,089in household debt. This totals about $10 billion in debt across the city. Households here were able to pay their debt down by about $448.
3. Toledo, Ohio
Households in Toledo may have only paid off $483 in debt during the quarter, but that’s because they have so little debt to begin with. Households in this Midwestern city only have about $58,251 in debt.
4. Newark, New Jersey
The average household debt in Newark is just $64,041. This low amount of debt has led to residents being able to pay off $531 of their debt, allowing them a little more freedom.
5. Jackson, Mississippi
With an average of $65,644 in debt, households in Jackson need to pay off as much as they can. During Q1 they were able to pay off $544 in debt to take a baby step toward getting rid of their debt burden.
6. New Haven, Connecticut
New Haven households have an average of $67,117 in debt. However, the residents are working steadily to pay it off. In Q1, each household paid off about $556 for a city-wide total of $29 million.
7. Buffalo, New York
In Buffalo, each household has an average of $68,209 in debt, for a combined debt amount of $8.8 billion. Overall, households have each paid off $565 in debt.
