One Maryland city is leading the state and most other towns across the nation in paying down household debt, according to a new analysis by WalletHub.
The new report assessed 182 cities using consumer financial data from TransUnion and the Federal Reserve, tracking changes in household debt from the fourth quarter of 2025 to the first quarter of 2026.
Nationally, total household debt stands at approximately $18.79 trillion, with mortgages making up the bulk, alongside student loans, auto loans, credit cards and personal loans, according to WalletHub.
In Maryland, Columbia residents are paying down debt faster than any other Maryland city. Columbia was ranked 28th in the nation, according to WalletHub's analysis.
In Columbia, the average household debt was $222,566 in the first quarter of 2026, a $4,147 decrease from the last quarter of 2025. Total debt in the city was $9,472,581,053, a more than $170 million decrease.
Baltimore was also included on the list, where it ranked 151st.
“A large decrease in the average resident’s debt in a city is a great sign — it shows that people are not only keeping up with their payments but also cutting back on borrowing," said WalletHub analyst Chip Lupo.
For the first quarter of 2026, WalletHub reported a $339 billion inflation-adjusted decline in household debt nationwide — a trend reflected across all 182 cities in the study.
California cities lead the nation in paying down household debt, with the top three spots — and seven of the top ten — going to Golden State communities.
See the full ranking online.
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