America's Thriftiest Cities

July 13, 2009— -- For many Americans, instant gratification has taken a backseat to long-term financial security. In May 2009, the U.S. personal income savings rate increased to 6.9 percent from 0 percent a year earlier. This is the highest level since December 1993, according to the Commerce Department.

Given the recession, it's understandable that Americans are hording more cash by spending less. Some, though, are doing a better job than others.

Consider San Jose, Calif., and Detroit, Mich. Both metros suffer from a high unemployment rate; San Jose's is 11.2 percent, and Detroit's inching up to 14.9 percent in May 2009, according to the Bureau of Labor Statistics. The median income in San Jose is $82,208; in Detroit, it's $42,809. But in both the credit card debt-to-household-income ratio is relatively low. In San Jose, the average household owes 11.46 percent of its income to credit-card companies. In Detroit, that household needs to pay back 13.02 percent.

Click here to learn more about America's thriftiest cities at our partner site, Forbes.com.

Both have less credit card debt relative to income than those living in places like Miami--indebted by an average of 22.61 percent--and Los Angeles, with an average debt-to-income ratio of 16.81 percent.

At 11.43 percent, Washington, D.C., boasts the lowest household credit card debt-to-income ratio. One reason? Government jobs attract those who are conservative about personal finances, suggests Alice M. Rivlin, an economist at Brookings, a Washington, D.C.-based independent research firm. What's more, this is a relatively prosperous metro area with a low unemployment rate of 6.2 percent (the national average is 9.5 percent). The District of Columbia also has high concentrations at the top and bottom of the income distribution spectrum--with 20 percent of residents below the poverty level--and a smaller middle class.