In this article, we will be taking a look at the 20 cities adding the most credit card debt. You can also skip our detailed analysis on the topic and directly head to the the Top City Adding the Most Credit Card Debt.
Robust Growth and Challenges in the Global Credit Card Market
The global credit card market is experiencing robust growth, driven by the increasing demand for cash alternatives and the availability of affordable credit cards. In 2021, the global credit card market was valued at USD 489.4 billion. By 2032, the market is projected to reach USD 1.2 trillion, growing at a CAGR of 8.8% from 2023 to 2032, according to Allied Market Research. The credit card payments market was valued at $524.9 billion in 2022. North America, led by the US, dominated the credit card market in 2021 and is expected to maintain its dominance throughout the forecast period.
In 2020, nearly 47% of American adults, or around 120 million people, had credit card debt. As of 2022, Visa accounted for 52% of the purchase volume on general-purpose credit cards in the US, followed by Mastercard at 24% and American Express at 20%.
2023 saw a rise in the difficulty of credit card debt management for American consumers. The Federal Reserve Bank of New York reports that, compared to other obligations like student or auto loans, 6.36% of credit card debt risks being over 90 days late by Q4 2023. Although rising interest rates have helped credit providers—such as American Express Company and JPMorgan Chase & Co.—by increasing interest collection and payment volumes, they also put them at greater risk of consumer default.
Companies like Bank of America and JPMorgan have raised their reserves in response. Because of its Card business, JPMorgan recorded an increase in its “net reserve build” in Q1 2024. Similarly, a reserve increase was reported in Bank of America’s Q1 2024 earnings release; nonetheless, the company’s stock price fell 4.9% due to the disclosure. By September 2023, Bank of America, the second-biggest bank in the United States based on deposits, had $1.8 trillion in deposits. During the Q1 2024 earnings call, the bank’s CFO, Alastair Borthwick, discussed these advancements and emphasized the tight relationship between customer success and the bank’s financial stability. He said
“Net charge-offs of $1.5 billion increased $306 million from the fourth quarter, driven by continued credit card seasoning and commercial real estate office exposures as swift evaluations from current appraisals and resolutions drove higher charge-offs.
The net charge-off ratio was 58 basis points, a 13 basis point increase from the fourth quarter. . . . . Consumer net charge-offs increased $150 million versus the fourth quarter from the flow-through of higher late-stage credit card delinquencies. . . . . We’re encouraged by the trend of delinquencies because the late stage increases slowed and early stage delinquencies improved as well, and that leads us to believe we should begin to see consumer net charge-offs start to level out over the next quarter or so. All of this is still well within our risk appetite and our expectations, and it’s consistent with the normalization of credit we discussed with you in prior calls.”
The use of credit cards has increased dramatically since the 2020 coronavirus lockdowns. U.S. consumer credit per capita in Q4 2020 was $2,970, down $1,000 from the year before. But by 2023, the average credit card debt per person had increased to $3,950, demonstrating a robust rebound and rising credit usage among consumers.
Our Methodology
For our methodology, we have ranked the cities adding the most credit card debt based on the total credit card debt in these cities in 2023. For the accuracy of data, we relied on the U.S. Census Bureau, Federal Reserve, and TransUnion.
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Here is our list of 20 cities adding the most credit card debt.
20. Boston, MA
Total Credit Card Debt: $3,928,693,668
According to the latest data from LendingTree, Massachusetts residents had an average credit card debt of $8,447 per person in Q4 2023, a 5.2% increase from the previous quarter and the 5th highest in the nation. One of the primary reasons for Boston’s high credit card debt is the city’s notoriously high cost of living. The median home price in Boston is over $700,000, and the average rent for a one-bedroom apartment exceeds $3,000 per month.
19. Columbus, OH
Total Credit Card Debt: $4,064,272,501
According to recent data, the average credit card debt per person in Columbus stands at $6,501, which is higher than the national average of $6,194. With the median home price in Columbus around $250,000, housing costs, including rent or mortgage payments, property taxes, and utilities, are a significant expense for many residents. The average annual percentage rate (APR) on credit card accounts in Columbus is 22.75%, higher than the national average of 21.59%. Credit card utilization rates in Columbus are around 30%, indicating that residents are using a significant portion of their available credit.
18. Nashville, TN
Total Credit Card Debt: $4,211,235,451
Tennessee households have one of the highest credit card debt burdens in the country, with an average credit card debt of $8,188 and an annual household income of $52,375. It would take Tennesseans 15 months to pay off their credit card debt, accruing $1,140 in interest charges. Nashville’s housing market has experienced significant growth, with median home prices increasing by over 20% in recent years which is one of the reasons for credit card debt.
17. Denver, CO
Total Credit Card Debt: $4,293,721,126
Denver stands seventeenth among the cities adding the most credit card debt in the US. The state also ranks high in the nation for household debt burden. Denver’s population skews younger, and younger generations like Gen Z and Millennials tend to have higher credit card balances Gen Z saw a 25.1% increase in card balances from 2021 to 2022 which is the highest of any generation.
16. Washington, DC
Total Credit Card Debt: $4,396,757,193
Washington, D.C. ranks high among U.S. states and territories in terms of median credit card debt, with a median balance of $3,290 per household. The estimated time to pay off median debt in the city is 15 months and 7 days.
15. Seattle, Washington
Total Credit Card Debt: $4,554,105,732
Seattle stands among the US cities with the most credit card debt. The average household in Washington owes $8,463 in credit card debt. Credit card debt in Washington grew 3% faster than the national average from July 2021 to 2023 and it would take the average Washington credit card holder over 14 months to completely pay off their debts.
14. Charlotte, NC
Total Credit Card Debt: $4,868,717,427
Charlotte holds fourteenth place among the cities in the US adding the most credit card debt. The household credit card debt stood at $13,736.
13. San Jose, CA
Total Credit Card Debt: $5,008,262,374
San Jose is one of the cities adding the most credit card debt. The total household credit card debt was $15,418.
12. Jacksonville, FL
Total Credit Card Debt: $5,204,895,712
The total credit card debt in Jacksonville stands at $5,204,895,712. Jacksonville has a relatively high cost of living compared to the national average which adds to the debt. Many residents, particularly those in service industries and lower-paying jobs, have struggled to keep up with the rising cost of living, leading to increased credit card usage.
11. San Fransisco, CA
Total Credit Card Debt: $5,406,973,332
San Fransisco stands eleventh among the cities adding the most credit card debt. Residents rely on credit cards to cover basic necessities and maintain their standard of living, leading to a significant accumulation of debt.
10. Austin, TX
Total Credit Card Debt: $6,400,501,853
According to the latest data from Experian, the average credit card debt in Texas stands at a staggering $6,542. One of the primary drivers of credit card debt in Austin is the soaring cost of living fueled by inflation. A report by Upgraded Points reveals that 22% of adults in Texas have increased their credit card usage due to higher prices, and 36.7% rely on credit cards to meet their spending needs.
9. Philadelphia, PA
Total Credit Card Debt: $7,334,294,003
In 2023, the typical household credit card debt in Philadelphia, Pennsylvania was $8,697, which is greater than the $8,425 nationwide average. The high cost of living combined with lower wages forces residents to depend on credit cards for security in their finances.
8. San Antonio, TX
Total Credit Card Debt: $7,682,505,175
The median credit card debt per household in San Antonio is around $3100. Inflation has particularly impacted expenses related to transportation, food, and housing which makes it challenging for households to cut back on these necessities.
7. San Diego, CA
Total Credit Card Debt: $8,102,445,120
San Diego is one of the cities with most credit card debt in the US. In California, the average credit card debt is $5,154, with only 4.4% of Californians having a maxed-out credit card. Nationally, the average household credit card debt stands at $10,479, which is $1,945 below the all-time record. A significant portion of San Diegans’ income goes towards rent or mortgage payments, leaving less for other expenses.
6. Phoenix, AZ
Total Credit Card Debt: $8,182,203,616
Phoenix, Arizona is among the cities with the highest and least sustainable credit card debt in the United States. In 2019, a study rated Phoenix as one of the cities with the least sustainable credit card debt, estimating it would take nearly 4.5 years and cost over $1,000 for an Arizonan to pay off the median credit card debt of $2,633.
5. Dallas, TX
Total Credit Card Debt: $8,228,515,041
Dallas ranks fifth among the top cities in the US for accumulating high credit card debt. As a major metropolitan area, Dallas offers ample opportunities for dining, entertainment, and retail therapy. The city’s vibrant culture and amenities can contribute to overspending and accumulation of credit card balances.
4. Houston, TX
Total Credit Card Debt: $12,347,725,544
The credit card debt in Houston is around $12,347,725,544. Many young adults in Houston struggle with budget deficits early in their careers which leads them to rely on credit cards to make ends meet. The average credit card debt per borrower in Texas is $6,542 which is higher than the national average.
3. Chicago, IL
Total Credit Card Debt: $14,914,488,121
Chicago is one of the US cities with the most credit card debt. 40% of Chicago residents have delinquent debt, which is higher than the national average of 35%. 14% of Chicago residents with student loans have their debt in collections. The average consumer debt in Illinois, including Chicago, increased by 1.6% from $85,991 to $87,351 between 2021 and 2022. 15% of Chicago residents have medical debt in collections.
2. Los Angeles, CA
Total Credit Card Debt: $23,170,022,537
As of August 2022, the average overall debt for Credit Karma members living in Los Angeles was $62,323, significantly higher than the national average of $49,454.The average credit card debt for Los Angeles residents was $6,837, which is higher than the national average of $6,469. While Los Angeles has areas of extreme wealth, it also has significant pockets of poverty. This disparity can lead to increased reliance on credit cards for basic necessities among lower-income residents. Additionally, only 9% of Los Angeles residents have medical debt in collections.
1. New York, NY
Total Credit Card Debt: $63,069,492,571
New York City tops the list for being the city adding the most credit card debt. As of 2022, Credit Karma members living in New York City held a combined total credit card debt of $3.23 billion, with an average credit card balance of $7,600 per individual. This figure is significantly higher than the national average of $6,404. 5.9% of New York state cardholders have at least one maxed-out credit card. The credit card utilization rate among New York state cardholders is 38.6% which is slightly above the national average of 37.7%
At Insider Monkey, we delve into a variety of topics, ranging from the cities adding the most credit card debt to business aspects; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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