Americans are carrying a staggering amount of household debt including more than $1.2 trillion in credit card debt, $1.65 trillion in auto loans, and several hundred billion dollars in personal loans.
The average household owed a total of $152,653 as of June 30, 2025.
But it’s not just the size of the debt that’s concerning. The pace at which it’s growing is also alarming. Household debt rose by $28 billion in 2024 alone.
However, some cities are seeing their debt levels rise much faster than others. WalletHub, a personal finance website, analyzed data for 100 of the largest U.S. cities, comparing figures from the first quarter of 2025 to the second quarter.
Here’s how the cities ranked:
|
Largest Increase |
Smallest Increase |
|
1. Winston-Salem, N.C. |
91. San Francisco, Calif. |
|
2. Anchorage, Alaska |
92. Fresno, Calif. |
|
3. Laredo, Texas |
93. Detroit, Mich. |
|
4. Riverside, Calif. |
94. Hialeah, Fla. |
|
5. Boise, Idaho |
95. San Bernardino, Calif. |
|
6. Scottsdale, Ariz. |
96. Lincoln, Neb. |
|
7. Washington, D.C. |
97. Buffalo, N.Y. |
|
8. Fort Wayne, Ind. |
98. Madison, Wisc. |
|
9. San Antonio, Texas |
99. Newark, N.J. |
|
10. Glendale, Ariz. |
100. Des Moines, Iowa |
Increasing the amount of debt you have isn’t always bad, but it’s problem when it accumulates too quickly for you to be able to make on-time payments, said Chip Lupo, WalletHub analyst. With today’s high interest rates, it’s easy for borrowing to become unsustainable.
Here are tips from WalletHub for paying off debt:
- Create a detailed debt repayment plan: Start by listing all your debts, including the total amount owed, interest rates, and minimum monthly payments. Develop a repayment plan by paying off the debt with the highest interest rate first while making minimum payments on others. This strategy, called the “avalanche method,” saves you the most money on interest long-term.
- Cut unnecessary expenses: Review your monthly budget and identify areas where you can reduce expenses. Redirect the money saved to paying debts. This allows you to pay off debts faster and you can also add to your emergency fund.
- Negotiate lower interest rates: If you’re having difficulty making payments, call your creditors and ask about negotiating lower interest rates. You may be able to get a reduction or set up a debt management plan.
- Generate additional income: Look for ways to increase your income, such as a part-time job, freelancing, or selling items you no longer need. Adding to your income provides extra funds that can be used to pay off your debts faster.
- Refinance your debt: If you have good or excellent credit but your debts have high interest rates, you could consider using a balance transfer credit card or debt consolidation loan to move the balance to a lender that charges a lower interest rate. With a balance transfer credit card, you may be able to get a 0 percent APR for a year or longer, giving you time to pay off your debt interest-free.
No matter where you live, best wishes in getting your debts paid off.
