Where does the U.S. borrow money from?

The U.S. borrows money primarily by selling Treasury securities (bills, notes, bonds) to a mix of domestic and international investors, including individuals, banks, mutual funds, pension funds, other governments (like Japan, UK, China), and even other parts of the U.S. government (like Social Security trust funds). These investors purchase U.S. debt for its perceived safety and stability, with major foreign holders being Japan, the United Kingdom, and China, though domestic institutions hold the largest overall portion.

Where does the US borrow the most money from?

Treasury bonds are how the US - and all governments for that matter - borrow hard cash: they issue government securities, which other countries and institutions buy. So, the US national debt is owned mostly in the US - but the $5.4tn foreign-owned debt is owned predominantly by Asian economies.

Who lends money to the USA?

The U.S. borrows money from a broad mix of domestic and foreign investors, including individual citizens, banks, pension funds, the Federal Reserve, and foreign governments like Japan, the UK, and China, by selling Treasury securities (bills, notes, bonds) to cover budget gaps. This debt is split between Public Debt (held by outsiders) and Intragovernmental Debt (money owed to other U.S. government agencies, primarily Social Security).
 

Does the US borrow money from China?

Yes, the U.S. government borrows money from China, primarily through China's purchase of U.S. Treasury bonds, making China a significant foreign holder of U.S. debt, though Japan usually holds the largest share, and China's holdings have varied over time. This borrowing supports U.S. spending by keeping interest rates low, while China accumulates dollars from its trade surplus to invest in these safe assets, though its share has decreased in recent years. 

Who owns over 70% of the U.S. 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.

Who does the US Owe its $35 Trillion debt? (National Debt Explained)

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.

Which country owns the highest debt in the world?

🇺🇸 U.S. The United States continues to lead with $38.3 trillion in government debt, which accounts for just over one third of the global debt pile. China and Japan follow with $18.7 trillion and $9.8 trillion respectively, meaning the top three countries combined account for 60% of the world's debt.

What country owes America the most money?

The U.S. owes the most money to Japan, which holds the largest amount of U.S. Treasury securities among foreign countries, followed by the United Kingdom and China as the next biggest foreign holders of American debt, according to data from 2024 and 2025. 

Can the US get out of debt?

Yes, the U.S. can get out of debt, but it requires significant, often controversial, fiscal changes like substantial spending cuts (Social Security, Medicare), tax increases, or boosting economic growth dramatically; most economists agree a combination of spending reductions and revenue increases is needed to make the debt sustainable, as growing out of it alone is unlikely given current spending demands.
 

Who does the US owe 36 trillion to?

The U.S. owes its $36 trillion national debt to a mix of domestic investors (like banks, mutual funds, and individuals), U.S. government accounts (like Social Security), the Federal Reserve, and foreign investors, with Japan, the UK, and China being the largest foreign holders, primarily through purchasing U.S. Treasury bonds. The largest portion is held domestically, but foreign entities hold trillions, making countries like Japan and China significant lenders.
 

Why is the U.S. debt so high?

The U.S. debt is high due to consistent annual budget deficits from spending exceeding revenues, driven by large outlays for Social Security, Medicare, defense, and interest on the existing debt, combined with tax cuts and increased spending for crises like wars (Bush), the 2008 recession (Obama), and the COVID-19 pandemic (Trump/Biden). An aging population and rising healthcare costs further strain finances, creating a structural imbalance where revenues don't cover promised benefits and services, leading to continuous borrowing.
 

What country owns the most money to the US?

Drilling into the roughly 24% of U.S. federal debt held by foreign investors at the end of 2024 reveals that Japan remains the largest holder, with $1.06 trillion in U.S. Treasuries, followed by China at $759 billion.

Who holds U.S. debt in 2025?

U.S. debt in 2025 is owned by a mix of domestic and foreign entities, with roughly 80% held by the public (investors, financial institutions, households) and 20% by government accounts (like Social Security), with major holders including U.S. investors (mutual funds, banks, pensions), the Federal Reserve, and foreign governments (Japan, China, UK), making the U.S. itself the biggest holder through intragovernmental holdings.
 

Who owns the 35 trillion in U.S. debt?

Who Owns All that Debt? On October 21, 2025, the nation's gross debt eclipsed $38 trillion. Of that amount, approximately 80 percent, was debt held by the public — representing cash borrowed from domestic and foreign investors.

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.
 

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. 

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.

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.

Is $20,000 a lot of debt?

If you're carrying a significant balance, like $20,000 in credit card debt, a rate like that could have even more of a detrimental impact on your finances. The longer the balance goes unpaid, the more the interest charges compound, turning what could have been a manageable debt into a hefty financial burden.

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 borrowed from Social Security?

The U.S. Federal Government borrows from Social Security's trust funds (OASI & DI) by investing surplus payroll taxes into special Treasury securities, using the money for general spending like wars or tax cuts, and promising to repay it later with interest; this is a standard practice, not stealing, but it shifts future obligations, with presidents from Johnson to Bush (and beyond) participating in this "intragovernmental borrowing," which is essentially an IOU from the government to itself, backed by the "full faith and credit" of the U.S. 

How much does China owe the USA?

China holds a significant amount of U.S. debt, primarily in Treasury bonds, with recent figures (late 2024/early 2025) showing China owning around $750-$800 billion in U.S. securities, making it the second-largest foreign holder after Japan, though this is a smaller percentage of the total U.S. debt. This amount fluctuates as China has been reducing its holdings, but it represents loans from China to the U.S. government, not a debt the U.S. owes to China in a punitive way, but rather investments in U.S. assets. 

Which country has zero 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.

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 is the largest loan taker from the World Bank?

“India tops the World Bank charts—not for begging, but for building. $39.3B isn't debt—it's investment in the future. While others borrow to survive, India borrows to scale.”