As the United States pays more in interest on its debt than on its entire military or Medicare system, and governments and households worldwide sink deeper into trillions in obligations, a staggering global debt crisis is quietly reshaping our economy.
Key Takeaways
- As of September 2024, the US national debt exceeded $35.3 trillion, representing approximately 122% of GDP
- In FY 2023, US federal interest payments on debt reached $659 billion, surpassing spending on defense and Medicare
- Japan's government debt-to-GDP ratio stood at 255% in 2023, the highest among developed nations
- In Q2 2024, US household debt totaled $17.8 trillion, up 0.4% from previous quarter
- US mortgage debt outstanding reached $12.61 trillion in Q2 2024
- US credit card debt hit $1.12 trillion in Q2 2024, a record high
- US total student loan debt outstanding was $1.61 trillion as of Q2 2024, affecting 42.6 million borrowers
- Average federal student loan debt per borrower was $38,375 in 2024
- 45 million Americans have student loan debt, with total private student loans at $117.7 billion in 2023
- Total US corporate debt outstanding was $13.7 trillion in Q2 2024
- US nonfinancial corporate business debt-to-GDP ratio was 50.3% in Q2 2024
- Leveraged loans outstanding reached $1.4 trillion in US in 2024
- Total global debt reached $307 trillion in 2023, 336% of global GDP
- Global government debt hit $91.4 trillion in 2023
- World household debt totaled $59.1 trillion in Q1 2024
Surging global debt burdens threaten both governments and ordinary households worldwide.
Corporate Debt
- Total US corporate debt outstanding was $13.7 trillion in Q2 2024
- US nonfinancial corporate business debt-to-GDP ratio was 50.3% in Q2 2024
- Leveraged loans outstanding reached $1.4 trillion in US in 2024
- Corporate bond market in US totaled $10.2 trillion in Q1 2024
- BBB-rated corporate bonds yield spread was 1.25% over Treasuries in Sep 2024
- China's corporate debt-to-GDP ratio was 162% in 2023, highest globally
- Eurozone non-financial corporate debt was 104% of GDP in Q1 2024
- US corporate debt service ratio hit 42.5% in Q2 2024
- Zombie firms (interest coverage <1) represent 15% of US public companies in 2024
- Global corporate debt issuance reached $7.5 trillion in 2023
- Japan's corporate debt-to-GDP was 110% in 2023
- UK non-financial corporate debt was 92% of GDP in 2023
- India's corporate debt stood at 49% of GDP in FY2023
- Brazil corporate debt-to-GDP ratio was 42% in 2023
- High-yield bond default rate in US was 4.1% in H1 2024
- US speculative-grade corporate debt issuance was $380 billion in 2023
- Average corporate debt maturity in US lengthened to 6.8 years in 2024
Corporate Debt Interpretation
While America’s corporate body is flexing on $13.7 trillion in debt, its pulse—a debt service ratio of 42.5%—is racing, and a 15% zombie infestation suggests this isn't just a workout, it's a haunted house.
Global Debt
- Total global debt reached $307 trillion in 2023, 336% of global GDP
- Global government debt hit $91.4 trillion in 2023
- World household debt totaled $59.1 trillion in Q1 2024
- Global corporate debt outstanding was $94.3 trillion at end-2023
- Global debt-to-GDP ratio peaked at 336% in 2023
- Emerging markets external debt was $11.4 trillion in Q1 2024
- Low-income countries debt service payments reached 15.5% of government revenue in 2023
- Global debt accumulation slowed to $12 trillion in 2023 from $16 trillion peak
- Advanced economies debt-to-GDP averaged 266% in 2023
- Emerging markets debt-to-GDP was 251% in 2023
- 59 low-income countries face debt distress or high risk in 2024
- Global bond market size was $133 trillion in 2023
- Offshore dollar debt of non-banks in EMs was $13.2 trillion in Q1 2024
- Global pension fund assets invested in debt were $25 trillion in 2023
- Debt of 60% of low-income countries unsustainable per IMF/World Bank DSA in 2024
- Global syndicated loan market outstanding was $6.8 trillion in 2023
Global Debt Interpretation
With the world collectively staggering under a debt load three times its economic output, it appears we've all agreed to a dangerously luxurious, multi-trillion-dollar "buy now, pay later" scheme for the entire planet.
Household/Consumer Debt
- In Q2 2024, US household debt totaled $17.8 trillion, up 0.4% from previous quarter
- US mortgage debt outstanding reached $12.61 trillion in Q2 2024
- US credit card debt hit $1.12 trillion in Q2 2024, a record high
- US auto loan debt stood at $1.62 trillion in Q2 2024
- Student loan debt in the US was $1.61 trillion in Q2 2024
- US household debt service payments as percentage of disposable income was 9.95% in Q2 2024
- In 2023, average US household debt was $104,215
- UK household debt-to-GDP ratio was 82.4% in Q1 2024
- Canada's household credit market debt reached CAD 3.135 trillion in Q1 2024
- Australia's household debt-to-GDP was 111.8% in Q1 2024, highest globally
- China's household debt-to-GDP ratio hit 63.3% in 2023
- South Korea's household debt was 105.7% of GDP in Q1 2024
- Netherlands household debt-to-GDP was 96.2% in 2023
- US delinquency rate on credit cards was 3.22% in Q2 2024, highest since 2012
- Mortgage delinquency rate in US was 2.89% in Q2 2024
- 11.6% of US credit card accounts were 30+ days delinquent in Q2 2024
- US personal loan debt totaled $248 billion in Q2 2024
- In 2023, 40% of US adults carried credit card debt month-to-month
- Japan's household debt-to-GDP was 65.1% in 2023
- Germany's household debt was 52.3% of GDP in 2023
- France household debt-to-GDP ratio was 64.8% in Q1 2024
- Italy's household debt was 40.1% of GDP in 2023
- Spain household debt-to-GDP fell to 53.6% in 2023
- Sweden's household debt was 88.5% of GDP in Q1 2024
Household/Consumer Debt Interpretation
From Tokyo to Toronto, we've built a towering, global monument to credit, where the average American's six-figure debt load feels quaint next to Australia's GDP-defying mortgage altar, all while credit card delinquency bells ominously chime in the background.
Public/Government Debt
- As of September 2024, the US national debt exceeded $35.3 trillion, representing approximately 122% of GDP
- In FY 2023, US federal interest payments on debt reached $659 billion, surpassing spending on defense and Medicare
- Japan's government debt-to-GDP ratio stood at 255% in 2023, the highest among developed nations
- Greece's public debt was 161.9% of GDP in 2023, down from peaks over 200% post-2010 crisis
- In 2024, Italy's general government gross debt hit 137.3% of GDP
- France's public debt reached 110.6% of GDP in Q2 2024
- UK's public sector net debt excluding Bank of England stood at 96.4% of GDP in July 2024
- Canada's federal debt-to-GDP ratio was 42.1% in 2023-24
- China's general government debt was estimated at 83.4% of GDP in 2023
- Brazil's gross government debt reached 78.4% of GDP in 2023
- India's central government debt stood at 57.1% of GDP in FY 2023-24
- Australia's gross debt was 37.6% of GDP in 2023-24
- South Africa's national government debt hit 73.9% of GDP in 2023/24
- In 2023, US federal debt held by the public was $26.2 trillion
- Eurozone public debt averaged 88.4% of GDP in Q1 2024
- Saudi Arabia's public debt reached 29.9% of GDP in 2023
- Turkey's general government debt was 38.5% of GDP in 2023
- Mexico's public debt stood at 49.7% of GDP in 2023
- Argentina's public debt was 85.3% of GDP in 2023
- Egypt's general government debt hit 88.7% of GDP in FY 2022/23
- Pakistan's public debt reached 77.3% of GDP in FY 2023
- Nigeria's federal government debt was 38.7% of GDP in 2023
Public/Government Debt Interpretation
It seems we’ve built a world where what we owe is now our biggest line of business, complete with lavish interest payments that comfortably outpace our most ambitious spending ambitions.
Student Debt
- US total student loan debt outstanding was $1.61 trillion as of Q2 2024, affecting 42.6 million borrowers
- Average federal student loan debt per borrower was $38,375 in 2024
- 45 million Americans have student loan debt, with total private student loans at $117.7 billion in 2023
- Student loan delinquency rate was 7.46% in Q2 2024 for US
- 14% of student loan borrowers are 3+ years delinquent or in default as of 2023
- Bachelor's degree holders have average debt of $37,310 upon graduation in 2023
- 56% of federal student loan borrowers owe less than $20,000 in 2023
- UK student loan debt total exceeded £200 billion in 2023, with average borrower owing £44,840
- Australia's total HELP/HECS debt reached AUD 74.4 billion in June 2023
- Canada's student debt averages CAD 28,000 per borrower in 2023
- In 2023, 70% of US college seniors graduated with debt averaging $29,800
- Black college graduates owe average $53,000 in student debt 10 years after graduation vs $28,000 for white peers in 2023 data
- Women hold 58% of total US student loan debt, averaging $31,680 vs men's $30,710 in 2023
- Parent PLUS loans total $114 billion in 2023
- 18% of US bachelor's degrees result in debt over $50,000 in 2023
- For-profit college borrowers have 13% default rate vs 4% for public 4-year in 2023
- Average student loan payment is $524/month for US borrowers in 2024
- 39% of borrowers struggling with payments say student debt delays homeownership
Student Debt Interpretation
This gargantuan, generation-spanning IOU—a staggering $1.61 trillion shackle shared by millions—reveals a system where the average graduate’s ticket to the middle class is an immobilizing $38,375 anchor, disproportionately heavier for Black graduates and women, while delinquency whispers the quiet part aloud: for many, this debt is simply not working as advertised.
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