5 Cities Where Millennials Have the Most Credit Card Debt
While other generations have paid down their balances, millennials keep digging themselves deeper into debt.
The generation that came of age starting in 2000 is seeing its credit debt continue to rise, reaching an average of $6,961 in 2025. Wallethub reported that in 2026 millennial debt increased to $7,013 while other generations' debt load went down. The problem isn’t spread equally across the country, however.
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Cardholders on the West Coast carry the most debt, and it’s no surprise that four of the five cities with the highest balances are in California.
5 Cities Where Millennials Carry High Credit Card Debt
The following five cities have the highest ratios of millennials, according to Census data, among the cities WalletHub ranked in the top 15 for credit card debt:
City | Average Credit Card Debt | Millennials (% of Population) | Median Age | Average Home Price |
New York, NY | $19,808 | 25% | 38 | $832,934 |
Fontana, CA | $19,316 | 24% | 33.3 | $640,652 |
Moreno Valley, CA | $19,127 | 24% | 32.1 | $556,513 |
Santa Ana, CA | $19,094 | 24% | 34.3 | $869,263 |
Ontario, CA | $18,346 | 25% | 33.1 | $671,649 |
The demographic data comes from Census ACS data, defining millennials as those born between 1981-1996.
The only city outside of California also happens to be the largest city in the US, and arguably the most expensive. Which, it turns out, is probably not a coincidence.
Why Millennials Carry So Much Debt Here
When you cross reference these cities with their average home price on Zillow (added above), a clear pattern emerges: these cities are all expensive.
“In higher-cost cities, there's simply less room for error,” said credit expert Robert Hughes of Priority Tradelines. “Little by little, the balances build. The car needs a repair, there's a medical bill or something comes up with the kids. You put it on the card thinking you'll catch up next month. Then another expense comes along.”
High inflation has also put many millennials behind on purchasing power, as incomes often fail to keep pace.
In ritzy cities like New York, there’s often a lifestyle component: the food scene and nightlife and expensive entertainment.
“Younger consumers have more exposure to social media and the endless scroll of new restaurants and this season’s wardrobe trends,” said debt attorney Leslie Tayne. “Especially in these high-cost cities, their income may not leave much room for discretionary spending, so they often turn to credit cards.”
Plus, millennials have entered a stage of life where they get hit with big expenses. They're raising children, paying for childcare, upsizing their homes and cars to accommodate said children, paying life insurance and often student loans. In some cases, they also care for aging parents, acting as the sandwich generation.
It leaves many feeling so hopeless that they don’t even bother trying to pay off their credit card balances.
How To Tackle Daunting Credit Card Debt
First, stop digging the hole deeper. Lock your cards away in a drawer, delete them from shopping apps and websites. Live on cash and your debit card only.
Next, choose one card to pay off first, and funnel all your savings from each paycheck into it. Some people opt for the card with the smallest balance (the “debt snowball” method), while others choose the card with the highest interest rate (“debt avalanche”). Pick one and knock it out, then move on to the next one and knock that out.
You can sometimes buy yourself some interest-free time to pay off the balance in full before the new interest kicks in. By opening a new card that offers an introductory 0% APR period for balance transfers, you get some breathing room, but it comes with the risk of temptation.
“A 0% balance-transfer card can help the right person, but it needs to be used as a tool, not as a way to move the problem somewhere else,” said Hughes. “If you transfer $10,000, you still owe $10,000.”
Ultimately, the root of the problem lies in your cash flow and spending more than you have. You can approach that problem from two directions: spending less and earning more. The greater the gap between what you bring home and what you spend, the faster you’ll pay off your balances.
Bear in mind that might mean moving to a lower cost city. While a $100,000 income won’t buy you a glamorous life in New York, it goes further in Kansas City, for example. Put every expense under the microscope — starting with your housing costs.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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