The burden of debt on Phoenix residents is a substantial one, as the latest study by LendingTree places the city alarmingly high on the list of America's most debt-ridden cities. Phoenix ranks 18th among the 50 largest U.S. metropolitan areas for average nonmortgage debt, which includes a variety of financial obligations such as auto loans, student loans, credit card balances, and personal loans. According to a report by ABC15, the average debt carried by Phoenix metro residents stands at $39,220.
Delving further into the numbers, LendingTree based its analysis on a sample of approximately 210,000 anonymized credit reports from its users during the second quarter, using this data alongside U.S. Census Bureau data to identify the biggest 50 metros. Austin leads the charge as the most debt-ridden city, where residents owe an average of $45,920, reports the Phoenix Business Journal; meanwhile, cities such as San Jose boast the lowest figures in the study—with an average debt of $26,704, making it the only metro under the $30,000 threshold. Phoenix’s debt composition reveals a particular affinity for automotive transportation with the average auto loan reaching $13,892, making up the bulk of personal debt for residents within the city.
In Phoenix, rising debt includes student loans averaging $10,338, credit card debt at $8,216, and personal loans at $4,175. This paints a picture of financial obligations beyond just car payments. The report found that 85.6% of residents have credit card debt, 24.3% have student loans, and 24.1% have personal loans. Additionally, 96.8% of Phoenix residents carry some form of nonmortgage debt, which, though below the national average, shows how widespread these financial burdens are.
A study across 50 metro areas found the average nonmortgage debt load to be $37,827, with auto loans being the largest at $12,437, followed by student loans at $11,747, credit card debt at $7,890, and personal loans at $3,703. The Phoenix Business Journal notes that the study did not clarify whether credit card debt was revolving or paid off quickly, leaving that detail unclear. For updates on financial trends in American cities, readers can sign up for free newsletters and download the Phoenix Business Journal app.
