How Deep In Debt Is The Average American, And Is It Worse In Other Countries? | Love Money

How Deep In Debt Is The Average American, And Is It Worse In Other Countries? | Love Money

How Deep In Debt Is The Average American, And Is It Worse In Other Countries? | Love Money

In a world where economic pressures seem to weigh heavy on many, a closer look at household debt reveals some intriguing global trends. As inflation and interest rates climb, household debt is hitting record highs in many corners of the globe. But amidst this economic storm, some nations stand out with deficient levels of household debt relative to their GDP.

Take the Philippines, for instance. Despite widespread poverty, household debt in the Philippines accounts for just 10.1% of the nation’s GDP. However, this seemingly low figure does not reflect robust financial health but rather stems from limited access to banking services and credit. With a significant portion of the population excluded from traditional banking, mortgages and other forms of debt are less common.

A similar story unfolds in Indonesia, where household debt is a % of GDP of 9.3%. Financial exclusion plays a significant role here, with a large portion of the population lacking access to basic banking services. Despite this, Indonesia boasts a high savings-to-GDP ratio, providing a buffer against rising debt levels.

Mexico follows suit with modest household debt levels, at 16.2% of GDP. Like the Philippines and Indonesia, limited financial inclusion contributes to this low figure, with only a fraction of the population having access to credit and credit cards.

However, not all nations are experiencing such low levels of household debt. Russia, for example, has seen household debt reach record highs, driven partly by economic challenges stemming from geopolitical tensions. Despite this, household debt remains relatively low as a percentage of GDP, indicating a lower reliance on debt financing than other nations.

In contrast, the United States has the highest household debt in the world, surpassing $17 trillion. Factors such as high inflation and interest rates have increased borrowing, with credit card debt exceeding $1 trillion. However, despite this staggering debt load, households may face a less severe financial crisis compared to the 2008 recession when adjusted for inflation………..full-loaf-600x400-1-e1700879832480 How Deep In Debt Is The Average American, And Is It Worse In Other Countries? | Love Money[read more]

Rising Dough

Rising-Dough-e1700879911412 How Deep In Debt Is The Average American, And Is It Worse In Other Countries? | Love MoneyHow do differing levels of household debt across nations impact economic stability and resilience, especially in the face of rising inflation and interest rates?

*Click on the “Full Loaf” icon to read the full article! After you read the full article, let us know your thoughts.

0 0 votes
Article Rating
stone-street-coffee-logo How Deep In Debt Is The Average American, And Is It Worse In Other Countries? | Love Money ☕️ **Discover Stone Street Coffee Company – Your Coffee Haven!** Today’s Dough readers, if you’re on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today’s Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street’s commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟

Subscribe
Notify of
cea2c9a356c6466a4ed5cca3da57d9ac?s=56&d=mm&r=g How Deep In Debt Is The Average American, And Is It Worse In Other Countries? | Love Money

1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
2a102943de8f29107fcce2bdc160db20?s=64&d=mm&r=g How Deep In Debt Is The Average American, And Is It Worse In Other Countries? | Love Money
Guest
Andrew Arntzen
24 days ago

The different levels of household debt across nations have a large impact on the nation’s economic stability and resilience, the reason for this is that the economic status of the nation depends on how much people are able to spend and how much money flows. As inflation and interest rates rise, people will not be able to spend as much money because they will be paying off debt instead of putting more money into the market, this would lead to worse stability and the nations will become less resilient as the public continues to do bad financially.

Share this content:

0 0 votes
Article Rating
stonestreetcoffee.com ☕️ **Discover Stone Street Coffee Company - Your Coffee Haven!** Today's Dough readers, if you're on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today's Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street's commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟

Subscribe
Notify of
guest

1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Andrew Arntzen
Guest
Andrew Arntzen
24 days ago

The different levels of household debt across nations have a large impact on the nation’s economic stability and resilience, the reason for this is that the economic status of the nation depends on how much people are able to spend and how much money flows. As inflation and interest rates rise, people will not be able to spend as much money because they will be paying off debt instead of putting more money into the market, this would lead to worse stability and the nations will become less resilient as the public continues to do bad financially.

1
0
Would love your thoughts, please comment.x
()
x
×