A national study found that Arizona cities are suffering from rising credit card debt, with the state ranking 10th overall in outstanding debt.
Scottsdale ranked 12th and Gilbert 15th for average debt per household, with $17,502 and $17,305, respectively, according to Wallethub’s research.
Peoria and Chandler aren’t far behind, ranking 34th and 40th, respectively, with per-household debt of $16,010 and $15,451, respectively.
The figures for total credit card debt also paint an alarming picture.
Phoenix ranks 76th overall in average household credit card debt, but the city’s total credit card debt is estimated at $8,193,959,421, ranking 7th in the nation.
Phoenix is the fifth largest city in the U.S. Scottsdale, with a population of just over 240,000, has assets worth over $2 billion.
Tucson ranks 126th out of 181 cities with $12,160 in debt, but has a total debt load of about $2.7 billion.
Tucson, with a population of approximately 550,000, is the second largest city in Arizona.
Nationally, several California cities and New York City ranked in the top five.
At the state level, WalletHub explained there are several factors that play into the amount of debt.
“Arizona’s credit card debt situation, while concerning, presents a somewhat manageable financial situation. With median credit card debt of $2,778, Arizona ranks 10th among states with the highest credit card balances,” WalletHub analyst Cassandra Happe said in a statement to The Center Square.
“On average, it takes Arizonans about 13 months and 24 days to pay off their debt and costs them about $336 in interest.
Despite the high debt, Arizona’s debt repayment terms are shorter than many other states, indicating that residents are doing a relatively good job of managing their debt.
“But the overall increase in debt and the time it takes to repay reflects a national trend of rising credit card debt, driven by factors such as rising costs of living and inflation,” she added.
Inflation in the Phoenix metropolitan area has slowed, but it was still the highest in the country in 2022.
It’s now at its lowest point, The Arizona Republic reported in May.
NPR reported in May that it’s becoming more common for Americans to fall behind on their credit card payments.
