By Daily Mail (U.S.) | Created at 2026-06-21 17:36:56 | Updated at 2026-06-21 21:03:45
3 hours ago
A new study reveals a stark divide between the American cities where people manage their money well and those where people's finances are spiraling.
Personal finance website WalletHub ranked more than 2,500 cities across 10 key indicators - including average credit scores, debt-to-income ratios, credit utilization and late payment rates - to identify where residents are the most and least financially disciplined.
At the very top of the list sits Cupertino, California – home to some of the most financially responsible residents in the country.
The study found locals carry exceptionally low credit card debt relative to income.
The median credit card debt ($2,881) is only 1.5 percent of the median income ($192,548) – the lowest nationwide.
Residents also boast average credit scores well above 750, placing them firmly in the 'excellent' category, while missed payment rates are among the lowest in the US.
Other high-performing cities cluster around affluent tech hubs, including Los Altos, Sunnyvale and Mountain View in California, as well as Lexington, Massachusetts.
Across these top-ranked areas, WalletHub found credit utilization rates often below 20 percent, far under the 30 percent threshold typically recommended by financial experts, and late payment shares in the low single digits.
Americans' ability to manage their money varies dramatically depending on where they live – with a new study revealing a stark divide between cities that keep debt under control and those where finances spiral
WalletHub analyst Chip Lupo
Top-ranked cites share common traits: high incomes, low delinquency rates and minimal reliance on credit despite having access to it.
'Residents have significantly higher credit scores… well into the excellent range,' wrote WalletHub analyst Chip Lupo.
He added that strong performance is driven by 'low debt-to-income ratios, restrained credit utilization, and low rates of late payments.'
At the bottom of the ranking are cities where people's financial strains are far more visible.
Places such as Baton Rouge, Louisiana, and cities in Texas and Illinois, rank among the worst for money management.
Average credit scores often fall below 650, dipping into the 'fair' or even 'poor' range, while credit utilization frequently exceeds 40 percent – a sign that many households are heavily reliant on borrowing.
Debt-to-income ratios are also significantly higher, and late payment rates are multiple times those seen in top-performing cities.
In practical terms, that means a much larger share of residents are struggling to keep up with bills or are carrying balances month to month.
In these cities, residents are far more likely to rely heavily on credit and fall behind on repayments – key indicators of financial stress.
Cupertino, California - home to Apple, Inc. - has some of the most financially responsible residents in the country
In addition to city rankings, the WalletHub study highlights nationwide statistics: how credit card debt varies from state to state - and how long it takes Americans to pay it off.
Across the US, the average household now carries around $11,000 in credit card debt, with total balances topping $1.3 trillion, underlining just how central borrowing has become to everyday finances.
WalletHub's data shows that some states consistently carry heavier credit card balances and longer repayment timelines.
States such as Alaska, Washington, Georgia, New Jersey, Connecticut and Colorado rank among those with the highest median debt, often exceeding $3,000 per household.
In Alaska, for example, the typical balance would take more than 16 months to pay off, assuming average interest rates and payments.
This reflects a combination of higher living costs and a greater reliance on credit to cover everyday expenses.
By contrast, states including Iowa, West Virginia and Kentucky tend to have lower balances, often closer to $2,000 to $2,500.
Even in these areas, however, the data paints a sobering picture, as it still takes more than 11 months on average to pay off a typical balance. In other words, no state is truly low-debt - only less burdened.
Baton Rouge, Louisiana, is home to the least financially responsible residents in the country
Looking at where debt is rising fastest adds another dimension.
Large, populous states such as California, Texas, Florida, New York and Illinois dominate overall credit card debt totals.
California households alone carry roughly $13,800 on average, with other major states close behind.
While population size plays a role, these figures also reflect high costs of living and heavier reliance on credit.
WalletHub stresses that raw debt levels do not tell the full story.
'Low average payments lead to long payoff timelines,' wrote Lupo.
That means two states with similar balances can have very different financial outcomes depending on how quickly residents pay down what they owe.
Taken together, the state-level data reinforces the same pattern seen in the city rankings.
Wealthier, high-cost states often carry more debt in absolute terms, while lower-income states may have less debt but fewer resources to pay it off quickly.
Across the board, Americans are typically taking close to a year or more to clear their balances, highlighting that the real divide is not just how much people owe, but how effectively they manage it.
The clear trend: wealth drives good habits.
