More Than Most, Bostonians Are Trying To Shrink Their Debts: Study

BOSTON — Whether driven by an economic downturn or worries about their mortgages, Bostonians are trying to shrink what they owe more than any other residents in the Northeast.

A study by financial website WalletHub says residents here decreased their debt by a per-household average of $3,787 during the first three months of 2026, compared to the last quarter of 2025.

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That amount was the 42nd-largest among the nearly 200 metro areas analyzed across the country by WalletHub – and ranked Boston first among northeastern cities.

The vast majority of the debt shrinkers are on the West Coast, according to WalletHub’s study, released last week. Santa Clarita, California, topped the list, with an average household debt reduction of $9,237.

But only five other metros in the eastern U.S. ranked higher than Boston: Columbia, Maryland (28); Point St. Lucie, Florida (35); Washington, D.C. (36); Charleston, South Carolina (37); and Virginia Beach, Virginia (39).

Nationwide, there was a $339 billion inflation-adjusted decline in household debt during the first three months of 2026, according to WalletHub.

The researchers said the study was based on data from the U.S. Federal Reserve, the Census Bureau and credit reporting agency TransUnion.

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