3 California cities lead US in paying off household debt, report finds

A new WalletHub report reveals that three California cities—Santa Clarita, Fremont, and San Jose—are leading the nation in reducing household debt. The analysis, based on Q1 2026 data, shows a $339 billion nationwide decline in household debt.

- Santa Clarita saw the largest average debt decrease of $9,237 per household. - Fremont followed with a $7,314 decrease, and San Jose with $6,230.

- Other California cities in the top 10 include Irvine, Rancho Cucamonga, Huntington Beach, and Chula Vista. - The report highlights significant regional variation, with Des Moines, Iowa, showing the smallest decrease at just $51 per household.

Overall, the findings indicate that residents in these California cities are not only keeping up with payments but also reducing borrowing, a positive sign for financial health.