Are any countries debt free?

Yes, while rare, some countries maintain virtually zero national debt, often due to significant natural resources (like oil) or strong financial reserves, with examples including Macau, Brunei, Liechtenstein, and Botswana, though some, like Norway, have massive wealth funds that offset their debt, creating a net-zero or positive financial position. Most nations have some debt, viewing it as a normal economic tool for funding growth, but these outliers show it's possible to avoid it.

What country in the world has no debt?

As the world's biggest gambling hub, Macao SAR has zero debt, bolstered by billions in gaming revenue and healthy financial reserves. Liechtenstein ranks in second, with virtually no debt and the only country in Europe ranking in the top 10.

Has our country ever been debt free?

By January of 1835, for the first and only time, all of the government's interest-bearing debt was paid off. Congress distributed the surplus to the states (many of which were heavily in debt). The Jackson administration ended with the country almost completely out of debt!

What country is most in debt?

The United States has the largest total national debt by far (over $38 trillion in 2025), followed by China and Japan, though Japan has a significantly higher debt relative to its GDP, around 230%. However, countries like Sudan, Singapore, Venezuela, and Lebanon face severe debt crises with debt-to-GDP ratios exceeding 160-220%.
 

Do countries ever pay off their debt?

Since a sovereign government, by definition, controls its own affairs, it cannot be obliged to pay back its debt. Nonetheless, governments may face severe pressure from lending countries.

Why Every Country Is in Debt? And Who Do They Owe?

Who owns over 70% of the US debt?

Who owns the most U.S. debt? Around 70-80 percent of U.S. debt is held by domestic financial actors and institutions in the United States. U.S. Treasuries represent a convenient, liquid, low-risk store of value.

How many Americans are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve.

Can the USA get out of debt?

There are a number of methods to reduce the U.S. national debt that go beyond raising taxes and cutting discretionary spending. One of the most controversial is to open the nation's borders to more immigration, kick-starting entrepreneurship and consumption.

Who owns the most U.S. debt?

The largest owner of U.S. debt isn't a single country but rather domestic entities, with U.S. investors, businesses, and government trust funds (especially Social Security) holding the biggest share, while among foreign nations, Japan is the top holder, followed by the United Kingdom and China, though Japan's and China's holdings have decreased relative to total debt, notes the Peter G. Peterson Foundation and USAFacts.
 

What is the poorest country in the world?

As of late 2025/early 2026, South Sudan is widely considered the poorest country in the world, consistently ranking last or near-last by GDP per capita due to civil conflict, political instability, and resource issues, though Afghanistan also appears at the very bottom in some rankings. Other nations like Burundi, Central African Republic, and Yemen also face extreme poverty.
 

What would happen if the US paid off all its debt?

If the U.S. paid off all its debt, it would trigger an economic crisis by eliminating safe investment options (Treasury bonds), causing a massive cash glut, crashing interest rates, disrupting monetary policy (Federal Reserve operations), forcing cuts in government services/spending, and potentially leading to a depression as the economy would lose its primary safe asset, disrupting the entire global financial system that relies on U.S. debt. The process itself, whether through extreme taxes or printing money, would likely cause hyperinflation or deep recession, while the end result removes a critical benchmark for the global economy.
 

Who was the last president to balance the US budget?

The last president to oversee a balanced federal budget was Bill Clinton, whose administration achieved budget surpluses for four consecutive years, from fiscal years 1998 to 2001, marking the first sustained period of budget balance in decades. This rare feat was due to a combination of economic growth, spending cuts, and tax increases, and it ended with the start of the new millennium, after which deficits returned. 

How could the US pay off its debt?

The U.S. could pay down its massive national debt primarily through a combination of raising revenue (taxes), cutting spending, and boosting economic growth, often requiring unpopular "grand bargains" involving Social Security/Medicare reform, closing tax loopholes, and increasing taxes on high earners or corporations. While technically the U.S. can "print money," this risks severe inflation, so fiscal strategies focus on balancing the budget to create surpluses, reducing interest costs, and improving the debt-to-GDP ratio over time, rather than a single payoff. 

What happens if China starts selling US bonds?

Since the U.S. dollar has a variable exchange rate, however, any sale by any nation holding huge U.S. debt or dollar reserves will trigger the adjustment of the trade balance at the international level. The offloaded U.S. reserves by China will either end up with another nation or will return to the U.S.

Who does Britain owe money to?

The public sector debt is the total amount of money the British government owes to the private sector and other purchasers of UK gilts (e.g. Bank of England). The OBR have forecast substantial rises in UK debt over the coming decade because of demographic factors, putting strain on UK spending.

Has America ever paid off its debt?

Yes, the U.S. paid off its entire national debt for the only time in history on January 1, 1835, under President Andrew Jackson, primarily from land sales and budget surpluses, but it was short-lived, with debt reappearing quickly and growing again due to economic events like the Panic of 1837, leading to continuous borrowing since. 

Who has the most debt on Earth?

The United States has the world's largest total government debt (over $38 trillion), followed by China and Japan, though Japan has the highest debt relative to its economic size (debt-to-GDP ratio). While the U.S. leads in sheer dollar amount, Japan's high debt burden (around 230% of GDP) signifies a proportionally greater financial challenge compared to other large economies.
 

Does the US owe China money?

Yes, the U.S. owes China money because China buys U.S. Treasury bonds, essentially lending money to the U.S. government, with China holding hundreds of billions in U.S. debt (around $750-$850 billion in recent years), though Japan holds more, and most U.S. debt is actually held domestically. This debt arises from China's trade surplus, using excess U.S. dollars to purchase these bonds, creating a financial relationship where China benefits from U.S. economic stability, notes the US-China Business Council and Investopedia. 

What is the #1 cause of debt in the US?

The leading cause of debt in America, by far, is mortgage debt, making up about 70% of total household debt, as housing is the largest purchase for most Americans. Following mortgages, major drivers of personal debt include auto loans, student loans, credit cards, often used for unexpected expenses like medical bills, and rising costs for necessities like childcare. 

Is Trump going to forgive tax debt?

There is no IRS forgiveness plan officially introduced by Trump in 2025. While some campaign proposals have discussed tax simplification or reduced rates, they do not include debt cancellation for individuals with unpaid taxes.

What happens if the USA can't pay its debt?

A default on all outstanding U.S. Treasuries would almost surely precipitate a global financial crisis. Further, because about 70% of the debt is held by Americans, most of the savings from foregone interest payments would be at the expense of U.S. investors.

How many Americans have $20,000 in credit card debt?

A majority of Americans (53%) carry some, with an average balance of $7,719. However, a third of those carrying debt (32%) owe $10,000 or more, while almost 1 in 10 (9%) have credit card debt over $20,000.

Is being debt-free the new rich?

Yes, for many people, being debt-free feels like the new rich because it provides immense financial freedom, peace of mind, and security, even if it doesn't mean having millions in the bank; it shifts the definition of wealth from pure income to a lack of financial burdens, allowing for more saving, investing, and enjoying life without stress. While traditional wealth is assets minus liabilities, eliminating debt frees up income for wealth-building, making it a significant step towards financial well-being and independence, especially as many struggle with rising costs and stagnant wages. 

What is the credit card limit for $70,000 salary?

The credit limit you can expect for a $70,000 salary across all your credit cards could be as much as $14000 to $21000, or even higher in some cases, according to our research. The exact amount depends heavily on multiple factors, like your credit score and how many credit lines you have open.