More Americans are using their credit cards more frequently, as credit card balances grew 3.6 percent on average in 50 major U.S. cities, per a new report by CompareCards.com.
Of all cities studied, Austin, Texas ranked first with residents' average credit card balance of $6,924, rising 12.3 percent annually. The 10 cities with the biggest balances were mostly in the American South and West. In San Jose, Calif., the average balance was up 10 percent, CNBC reports. Washington, D.C. was found to have the highest average credit balance overall in 2018, $7,649, while Indianapolis had the lowest, $5,393. The report calls the overall debt growth "discouraging," and points out that only in 6 cities did balances go down.
A number of up-and-coming tech hubs cluster at the top of the list, and many of the metropolitan areas where balances have grown substantially are bustling. Over the summer, Austin was named the top place to live in America by U.S. News & World Report, based on affordability, job prospects and quality of life. Texas also ranked as CNBC's top state for business this year.
Still, the report says, "the truth is that when you carry credit card debt during good economic times, it is likely that you aren't putting enough money away for when things go bad."
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds that beach homes are the most sought-after vacation-home type, and the investment potential of a second home is an important factor in homebuyers' purchasing decisions
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable