A new WalletHub report shows that three California cities are leading the nation in reducing household debt. - Santa Clarita saw the largest drop, with average debt falling by $9,237.
- Fremont and San Jose followed with decreases of $7,314 and $6,230, respectively. - Nationwide, household debt fell by $339 billion in Q1 2026.
- Other California cities in the top 10 include Irvine, Rancho Cucamonga, Huntington Beach, and Chula Vista. The report highlights that wealthier, credit-responsible residents in these cities are driving the trend, though debt reduction rates vary widely across the country.