A new WalletHub study has revealed that Southern California cities top the list for highest credit card debt per household in the United States, with Santa Clarita claiming the number one spot among 181 cities analyzed.
Santa Clarita households carry an average credit card debt of $22,753, totaling approximately $1.7 billion across its 228,000 residents. Chula Vista follows closely in second place with $20,567 average household debt, amounting to $1.8 billion for its 275,000 residents.
However, experts suggest these high numbers may actually indicate financial strength rather than distress in these communities. "In areas like Santa Clarita, where the median household income is $118,489, the high credit card debt reflects greater financial flexibility," explains Chip Lupo, a WalletHub writer.
Other Southern California cities ranking in the top 10 include:
- Fontana (#4)
- Riverside (#5)
- Rancho Cucamonga (#7)
- Glendale (#10)
The study reveals that residents in these Southern California cities typically maintain multiple credit cards and often leverage low introductory rates. Santa Clarita ranks second nationwide for the number of credit cards per household, while Chula Vista places 39th in this category.
The findings come as national credit card debt surpasses $1.35 trillion by the end of 2024, with defaults reaching a 14-year high of $46 billion between January and September 2024.
While some regions show high debt due to financial hardship, particularly in areas with lower median incomes like New York City, Southern California's elevated numbers appear linked to strategic credit management rather than economic distress.
"The key is not letting debt become overwhelming to the point where it affects other financial obligations like car loans or mortgages," Lupo advises, noting that these Southern California cities generally score better on measurements of financial distress and debt delinquency.