Story perspectives

Affluent Cities Top $1.35 T Debt; Yields Raise Mortgages

6/13/2026

Summary

Story summary

WalletHub analysts report that cities with the highest credit-card balances—led by Santa Clarita, California—also have the highest median incomes and lowest delinquency rates, indicating borrowing capacity.
U.S. residents hold about $1.35 trillion in credit-card debt, with another $100 billion projected for 2026.
The Budget Lab says higher Treasury yields have added about $2,500 yearly to mortgage costs and $120 to auto-loan payments, pressuring families.

History

Historical Context

Lehman Brothers’ September 2008 collapse shattered a system where household debt had risen to 127 % of disposable income (2007) and mortgage debt hit 73 % of GDP, prompting the Federal Reserve to slash rates to 0.25 % by December 2008. Decades of over-leveraging left credit-card balances above $800 billion, a pattern WalletHub now cites in Santa Clarita’s ranking.

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Story summary

WalletHub analysts report that cities with the highest credit-card balances—led by Santa Clarita, California—also have the highest median incomes and lowest delinquency rates, indicating borrowing capacity.
U.S. residents hold about $1.35 trillion in credit-card debt, with another $100 billion projected for 2026.
The Budget Lab says higher Treasury yields have added about $2,500 yearly to mortgage costs and $120 to auto-loan payments, pressuring families.

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