Brace yourself for a staggering fact: by the time you finish reading this sentence, America's national debt will have grown by another million dollars, propelling a collective financial burden—spanning federal, household, and corporate balance sheets—that now eclipses $36 trillion and shapes everything from your monthly payments to the nation's economic future.
Key Takeaways
- As of September 30, 2024, the total gross federal debt of the United States stands at $35,465,265,133,106.11, comprising debt held by the public and intragovernmental holdings
- The US federal debt held by the public reached $28,210,000,000,000 by the end of fiscal year 2024, representing approximately 99% of GDP
- Intragovernmental holdings of US federal debt amounted to $7,255,265,133,106 as of September 2024, primarily consisting of obligations to federal trust funds like Social Security
- US households carried $17.5 trillion in total debt as of Q2 2024, with mortgages comprising 70% at $12.25 trillion
- Household debt service payments as a percentage of disposable personal income stood at 9.95% in Q2 2024, the lowest since 2000
- Mortgage debt balances increased by 0.8% to $12.25 trillion in Q2 2024, driven by home price appreciation
- Total US student loan debt outstanding is $1.61 trillion as of Q2 2024, held by 42.2 million borrowers averaging $38,375 each
- Federal student loans comprise 92% of total student debt at $1.48 trillion, with Direct Loans at $1.37 trillion in 2024
- Average federal student loan debt per borrower is $38,375 as of 2024, with 45% of borrowers having $20,000-$39,999 in debt
- Total nonfinancial corporate debt in the US reached $13.46 trillion as of Q2 2024, 51% of GDP
- Corporate bond market outstanding totals $10.2 trillion in Q2 2024, with investment-grade at $7.8T and high-yield at $1.3T
- Leveraged loans outstanding hit $1.4 trillion in 2024, with 60% covenant-lite structures increasing risk
- Total state and local government debt outstanding is $3.2 trillion as of FY2023, including $1.0T general obligation bonds
- State government debt per capita averages $6,500 in 2024, highest in New York at $18,700 and lowest in Wyoming at $1,200
- Municipal bond market issuance totaled $465 billion in 2023, projected $500 billion in 2024 for infrastructure
U.S. debt is massive, affecting households, corporations, and the entire nation's future.
Corporate Debt
- Total nonfinancial corporate debt in the US reached $13.46 trillion as of Q2 2024, 51% of GDP
- Corporate bond market outstanding totals $10.2 trillion in Q2 2024, with investment-grade at $7.8T and high-yield at $1.3T
- Leveraged loans outstanding hit $1.4 trillion in 2024, with 60% covenant-lite structures increasing risk
- Corporate debt service costs rose 15% YoY to $450 billion in Q1 2024 due to higher interest rates
- Zombie firms with interest coverage below 1x represent 10% of public companies, holding $1.1 trillion debt in 2024
- Buyout loans total $1.37 trillion, 58% of institutional leveraged loan market in mid-2024
- Corporate net debt to EBITDA ratio averaged 2.1x for S&P 500 firms in Q2 2024, up from 1.8x pre-pandemic
- Private credit market grew to $1.7 trillion AUM by 2024, funding 20% of middle-market corporate debt
- Issuance of investment-grade corporate bonds was $1.3 trillion in 2023, projected $1.4T in 2024 despite rates
- High-yield bond spreads widened to 370 bps over Treasuries in Q3 2024 amid economic uncertainty
- Total corporate liabilities on balance sheets hit $25.8 trillion Q2 2024, including $13.5T debt and $6.2T pensions
- Airlines sector corporate debt at $150 billion post-Covid, with leverage 5.5x EBITDA in 2024
- Tech sector holds 25% of corporate cash reserves at $2.5 trillion offsetting 30% of debt in 2024
- Corporate credit market $28 trillion total, debt $18.5T incl commercial paper in Q3 2024
- BBB-rated corporate bonds yield 5.3% avg in Q4 2024, spreads 140 bps over Treasuries
- Leveraged loan issuance $140 billion Q3 2024, refinancings 70% of volume at SOFR+450bps
- Corporate bond maturities wall $2.5 trillion 2025-2027, pressuring refinancing costs
- Interest coverage for nonfin corps falls to 5.2x EBITDA in Q3 2024 from 6.5x 2022
- Private equity portfolio cos hold $2.8 trillion debt, avg leverage 6.5x in 2024
- IG corporate ETF inflows $50 billion YTD 2024 amid rate cuts, boosting issuance
- Energy sector deleverages to 1.8x net debt/EBITDA, lowest since 2014 oil crash
- CLO issuance hits $130 billion first 9 months 2024, 75% refinancings
Corporate Debt Interpretation
America's corporate engine is now running on a concerning blend of high-octane debt, risky covenant-lite fuel, and a growing number of zombie passengers, all while heading toward a towering wall of refinancing at much higher interest rates.
Federal Debt
- As of September 30, 2024, the total gross federal debt of the United States stands at $35,465,265,133,106.11, comprising debt held by the public and intragovernmental holdings
- The US federal debt held by the public reached $28,210,000,000,000 by the end of fiscal year 2024, representing approximately 99% of GDP
- Intragovernmental holdings of US federal debt amounted to $7,255,265,133,106 as of September 2024, primarily consisting of obligations to federal trust funds like Social Security
- From 2020 to 2024, the US federal debt increased by over $10 trillion due to pandemic-related spending, reaching $35.4 trillion by mid-2024
- The average annual interest payment on US federal debt in FY2024 is projected at $892 billion, up from $659 billion in FY2023
- US federal debt as a percentage of GDP was 122.3% at the end of Q2 2024, the highest since World War II
- Debt held by foreign investors constitutes 22.9% of total US public debt, totaling about $8.1 trillion as of June 2024
- Japan holds $1.118 trillion in US Treasury securities as of July 2024, making it the largest foreign holder of US federal debt
- The US Treasury issued $23.9 trillion in marketable debt securities during FY2024 to finance deficits and maturing debt
- Federal debt subject to the statutory limit was $35.0 trillion as of August 2024 before the debt ceiling suspension
- Cumulative US federal budget deficits from 2001 to 2024 total $22.3 trillion, contributing significantly to debt accumulation
- Interest costs on US federal debt are expected to reach 3.1% of GDP in 2024, surpassing defense spending
- The 10-year Treasury note yield averaged 4.2% in 2024, increasing annual debt servicing costs by $200 billion compared to 2023
- US federal debt per capita reached $105,757 as of mid-2024, based on a population of 335 million
- Medicare and Social Security trust funds hold 18% of total federal debt in intragovernmental holdings worth $6.5 trillion as of 2024
- The Federal Reserve holds $4.8 trillion in Treasury securities as of September 2024, about 17% of public debt
- US federal debt grew by $2.3 trillion in FY2023 alone, driven by $1.7 trillion deficit
- Maturity profile shows 31% of marketable US federal debt matures within one year as of Q3 2024
- Average interest rate on US federal debt outstanding is 3.28% as of August 2024
- CBO projects US federal debt held by the public to rise to 166% of GDP by 2054 under current law
- As of December 2024 update, US public debt outstanding hits $36.2 trillion, up $734 billion in 3 months
- Debt-to-GDP ratio climbs to 124% in Q3 2024 projections, per IMF data on US fiscal metrics
- Foreign official holdings of Treasuries at $8.5 trillion, 24% of public debt in Q3 2024
- China reduces holdings to $768 billion in US Treasuries as of August 2024, down 40% from peak
- FY2025 deficit projected at $1.9 trillion, adding to federal debt amid 2.5% GDP growth
Federal Debt Interpretation
With a national credit card balance now flirting with $36 trillion and each citizen's share surpassing $105,000, we've essentially mortgaged tomorrow to pay for today, all while the interest payments alone are now throwing a bigger annual party than the Pentagon.
Household Debt
- US households carried $17.5 trillion in total debt as of Q2 2024, with mortgages comprising 70% at $12.25 trillion
- Household debt service payments as a percentage of disposable personal income stood at 9.95% in Q2 2024, the lowest since 2000
- Mortgage debt balances increased by 0.8% to $12.25 trillion in Q2 2024, driven by home price appreciation
- Credit card debt surged to $1.122 trillion in Q2 2024, up 9.5% year-over-year, the highest growth since 2021
- Auto loan debt totaled $1.619 trillion in Q2 2024, with delinquency rates at 2.74% for loans 90+ days past due
- Student loan debt balances remained at $1.61 trillion in Q2 2024, despite forgiveness programs affecting 5% of borrowers
- Household debt per capita reached $52,000 in 2024 for the 334 million US population
- Delinquency rate on credit cards hit 3.22% in Q2 2024, highest in 13 years, affecting 8.5 million accounts
- Total revolving debt grew 5.4% year-over-year to $1.14 trillion by Q3 2024, led by credit cards
- Non-housing debt reached $5.08 trillion in Q2 2024, including $1.61T student, $1.62T auto, $1.12T credit cards
- Mortgage delinquency rate dropped to 2.92% in Q1 2024, but seriously delinquent (90+ days) at 1.09%
- Household mortgage debt delinquency at 3.97% total, but FHA/VA loans at 11.03% in Q3 2024
- Total household debt rises 0.5% QoQ to $17.7 trillion in Q3 2024, per NY Fed report
- Credit card balances up 4.5% YoY to $1.18 trillion, with subprime delinquency at 9.1%
- HELOC balances grow 4.2% to $380 billion in Q3 2024 as equity tapped amid high rates
- Auto loan originations down 5% YoY but balances at $1.64 trillion with 2.8% delinquency
- Debt payment-to-income ratio at 11.4% in Q3 2024, highest since 2008 for young borrowers
- 7.4% of credit card accounts 90+ days delinquent in Q3 2024, up from 6.3% prior year
- Mortgage balances $12.61 trillion, 71% of total household debt in late 2024
Household Debt Interpretation
Americans are so preoccupied with their dream homes they've mortgaged, they seem to be funding the American dream on their credit cards, and the bill for that dream is starting to come due with a delinquency ding.
State Local Debt
- Total state and local government debt outstanding is $3.2 trillion as of FY2023, including $1.0T general obligation bonds
- State government debt per capita averages $6,500 in 2024, highest in New York at $18,700 and lowest in Wyoming at $1,200
- Municipal bond market issuance totaled $465 billion in 2023, projected $500 billion in 2024 for infrastructure
- Pension liabilities for state and local governments unfunded by $1.5 trillion as of FY2023, 75% funded ratio
- California holds largest state debt at $558 billion in FY2023, followed by New York at $368 billion
- Local government debt totals $1.8 trillion, with school districts owing $500 billion for facilities in 2024
- OPEB unfunded liabilities for state/local reach $630 billion in 2023, averaging 25% funded
- General fund spending exceeds revenues by 5% on average for states in FY2024, adding to debt via bonds
- Revenue bonds outstanding $1.2 trillion, 40% of muni market, backed by project revenues not taxes
- Illinois unfunded pension debt hits $140 billion in 2024, 50% funded ratio worst among states
- Muni default rate under 0.1% annually, but $3.5 billion distressed debt in 2024 amid high rates
- GO bond yields averaged 4.1% for 10-year in Q3 2024, up 150 bps from 2022 lows
- Total state debt service payments $90 billion annually in FY2024, 10% of budgets on average
- State pension funded ratio avg 76.3% FY2023 end, $1.4T unfunded covering 5.5M retirees
- Muni GO issuance $180 billion YTD Oct 2024, up 20% YoY for capex projects
- Texas local debt $250 billion largest, school bonds $50B, toll roads $30B 2024
- OPEB funded 42% avg, $700B unfunded for healthcare retirees state/local 2023
- NJ pension debt $130B unfunded, 36% funded worst ratio among states 2024
- Revenue bond defaults 4 cases $1.2B in 2023, hospitals 50% of distressed volume
- Debt affordability metric: service <15% revenues for 80% states, but 25% for IL/NJ 2024
- Water/sewer revenue bonds $90B issued 2024 under infrastructure acts
State Local Debt Interpretation
America's cities and states are collectively sitting on a debt-laden couch they can't afford to replace, still promising generous pensions they haven't fully funded while hoping future taxpayers don't notice the credit card bill taped to the bottom.
Student Debt
- Total US student loan debt outstanding is $1.61 trillion as of Q2 2024, held by 42.2 million borrowers averaging $38,375 each
- Federal student loans comprise 92% of total student debt at $1.48 trillion, with Direct Loans at $1.37 trillion in 2024
- Average federal student loan debt per borrower is $38,375 as of 2024, with 45% of borrowers having $20,000-$39,999 in debt
- Student loan delinquency or in forbearance rate is 20.3% as of Q1 2024, affecting 7.75 million borrowers post-pandemic pause
- Total student debt has grown 327% since 2004, from $493 billion to $1.61 trillion by 2024
- 14.3% of student loan debt or $230 billion is held by borrowers aged 50+, averaging $55,000 per borrower in 2024
- Parent PLUS loans total $108 billion in 2024, with average balance $22,653, taken for 3.8 million dependent undergrads
- Default rate on federal student loans within 3 years is 7.5% for 2020 cohort, higher at 12.9% for for-profit college attendees
- Student debt payment burden is 19.8% of monthly income for bachelor's degree holders under 35 in 2023
- Forgiveness via Public Service Loan Forgiveness approved $60 billion for 870,000 borrowers by September 2024
- Private student loans total $125.5 billion in 2024, with average balance $39,498 and default rates up to 17.6%
- Women hold 58% of total student debt at $929 billion, with Black women owing 20% more than white men on average
- Graduate student loans average $80,400 per borrower, comprising 40% of total debt volume in 2024
- 39% of borrowers owe less than $10,000, but top 10% hold 35% of debt at over $100,000 each in 2024
- Biden administration forgave $160 billion in student debt for 4.4 million borrowers through 18 programs by 2024
- Student debt delays homeownership by 7 years on average for millennials with degrees in 2024 surveys
- Student loans in repayment see 8.2% delinquency rate post-pause in Q4 2024
- Total student debt stable at $1.62 trillion, but SAVE plan enrolls 8 million reducing payments
- Average debt for Class of 2024 grads $29,000 federal loans, down 4% from prior year
- Black borrowers hold $220 billion or 14% of debt but 6% of population, avg $53,000 each
- PSLF forgives $73.7 billion for 1 million borrowers by November 2024
- 44 million Americans with student debt, median balance $19,300, 10th percentile $3,400
- For-profit college borrowers default at 19% rate vs 4% public four-year in 2024 cohorts
- Graduate professional debt avg $166,500 for medical grads, $130,000 law in 2024
- Borrower defense discharges $6 billion for 1.6 million since 2015, expanded 2024
- Community college debt avg $9,200, lowest category, but 30% default within 12 years
Student Debt Interpretation
America’s higher education system has masterfully engineered a trillion-dollar paradox where we borrow from our future to pay for the credentials meant to secure it, leaving millions of graduates, dropouts, and even retirees shackled to a ledger where the principal on their dreams accrues interest faster than their prospects.
Sources & References
- Reference 1FISCALDATAfiscaldata.treasury.govVisit source
- Reference 2TREASURYDIRECTtreasurydirect.govVisit source
- Reference 3CBOcbo.govVisit source
- Reference 4FREDfred.stlouisfed.orgVisit source
- Reference 5TICDATAticdata.treasury.govVisit source
- Reference 6HOMEhome.treasury.govVisit source
- Reference 7PGPFpgpf.orgVisit source
- Reference 8SSAssa.govVisit source
- Reference 9FEDERALRESERVEfederalreserve.govVisit source
- Reference 10NEWYORKFEDnewyorkfed.orgVisit source
- Reference 11CALCULATEDRISKBLOGcalculatedriskblog.comVisit source
- Reference 12MBAmba.orgVisit source
- Reference 13EDUCATIONDATAeducationdata.orgVisit source
- Reference 14STUDENTAIDstudentaid.govVisit source
- Reference 15EDed.govVisit source
- Reference 16BROOKINGSbrookings.eduVisit source
- Reference 17URBANurban.orgVisit source
- Reference 18SIFMAsifma.orgVisit source
- Reference 19SPGLOBALspglobal.comVisit source
- Reference 20BISbis.orgVisit source
- Reference 21INSIGHTinsight.factset.comVisit source
- Reference 22MCKINSEYmckinsey.comVisit source
- Reference 23CNBCcnbc.comVisit source
- Reference 24PEWTRUSTSpewtrusts.orgVisit source
- Reference 25USBANKusbank.comVisit source
- Reference 26GFOAgfoa.orgVisit source
- Reference 27NASRAnasra.orgVisit source
- Reference 28NASBOnasbo.orgVisit source
- Reference 29MSRBmsrb.orgVisit source
- Reference 30CIVICFEDcivicfed.orgVisit source
- Reference 31MOODYSmoodys.comVisit source
- Reference 32BLOOMBERGbloomberg.comVisit source
- Reference 33IMFimf.orgVisit source
- Reference 34TRANSUNIONtransunion.comVisit source
- Reference 35EXPERIANexperian.comVisit source
- Reference 36TICASticas.orgVisit source
- Reference 37LENDINGTREElendingtree.comVisit source
- Reference 38AAMCaamc.orgVisit source
- Reference 39LEVFININSIGHTSlevfininsights.comVisit source
- Reference 40MORGANSTANLEYmorganstanley.comVisit source
- Reference 41BAINbain.comVisit source
- Reference 42ICIici.orgVisit source
- Reference 43PWCpwc.comVisit source
- Reference 44REFINITIVrefinitiv.comVisit source
- Reference 45DALLASFEDdallasfed.orgVisit source
- Reference 46MERCERmercer.comVisit source
- Reference 47EPAepa.govVisit source