Which country is debt free?

No independent country is completely debt-free, but several, like Macao SAR, Brunei, Kuwait, Saudi Arabia, Liechtenstein, and Singapore, have extremely low or virtually no national debt relative to their GDP due to strong resource revenues (oil/gambling) or disciplined fiscal policies, with Macao and Singapore often cited as having zero net government debt.

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.

Which country is most in debt?

The United States has the most national debt by total dollar amount (over $38 trillion in 2025), while Japan often ranks highest for debt as a percentage of its GDP (over 230%), indicating a larger burden relative to its economy, with countries like Sudan also facing extremely high debt-to-GDP ratios. China, Japan, the UK, and France follow the U.S. in total debt figures, but Japan's debt relative to its economic size is a major concern, notes Visual Capitalist and this article from 2025.
 

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.

Which country lends the most money?

It reached a peak of $1 trillion in 2021, after which it declined to approximately $800 billion in 2023. Notably, from 2016 onwards, China's overseas lending exceeded the combined official lending of the IMF, World Bank, and 22 Paris Club countries, making China the most important creditor to developing countries.

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

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.

What rank is America in debt?

The United States has the largest external debt in the world. The total amount of U.S. Treasury securities held by foreign entities in December 2021 was $7.7 trillion, up from $7.1 trillion in December 2020. Total US federal government debt breached the $30 trillion mark for the first time in history in February 2022.

What happens if America does not pay its debt?

Economists say consequences of a default on the national debt could include higher interest rates, a stock market crash, a recession and massive job losses.

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 would happen if the US stopped paying the debt?

So, in a practical sense, Social Security and federal pension payments might cease; federal agencies would furlough employees; vital economic services such as the post office, Transportation Security Administration, U.S. Customs and the Federal Aviation Administration would stop without an emergency stopgap measure by ...

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.
 

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.
 

Who owns the 36 trillion 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 country has the worst debt?

The country with the worst debt depends on how you measure it, but Sudan often leads in debt-to-GDP ratio (around 250%+) due to conflict, while Japan has the highest among developed nations (over 230%), and the United States holds the largest absolute debt (trillions). Other nations with very high debt-to-GDP include Singapore, Greece, and Italy, with emerging economies like Sri Lanka, Laos, and Pakistan also facing severe distress. 

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.

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.

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. 

What two debts cannot be erased?

Special debts like child support, alimony and student loans, will not be eliminated when filing for bankruptcy. Not all debts are treated the same. The law takes some debts very seriously and these cannot be wiped out by filing for bankruptcy.

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 United States get out of debt?

Yes, the U.S. can get out of debt, but it requires a combination of significant, sustained actions like raising taxes, cutting spending (especially on entitlement programs), boosting economic growth (productivity), or potentially controversial measures like opening borders for labor; economists agree a "grand bargain" with bipartisan commitment is needed, as rapid growth alone won't solve the large, structural debt problem, which could otherwise lead to instability.
 

What is the maximum debt the US can have?

The Fiscal Responsibility Act of 2023 (FRA; P.L. 118-5), enacted on June 3, 2023, had suspended the debt limit until January 1, 2025. On January 2, 2025, the federal debt limit was reinstated at $36.1 trillion.

Who has more debt, China or America?

Yes, China's total national debt (government, corporate, and household) as a percentage of GDP is now generally considered higher than the U.S., though the U.S. has a much larger absolute dollar amount of government debt; China's debt, especially local government and SOE debt, has surged, reaching over 300% of GDP, exceeding the U.S.'s debt-to-GDP ratio and posing significant economic risks due to reliance on credit-fueled growth, state-owned enterprise leverage, and property sector issues. 

Why is the US so heavily in debt?

The U.S. is in so much debt because it consistently spends more than it collects in revenue, creating annual budget deficits that add to the total national debt, driven by factors like tax cuts, increased spending on defense and social programs (Social Security, Medicare), emergency responses (wars, financial crises, COVID-19), and the rising costs of servicing the debt itself, leading to a structural imbalance where spending outpaces revenue, particularly with an aging population and growing healthcare costs. 

Who owes the US the most money?

The U.S. owes the most money to its own domestic investors and government entities, holding the largest portion of its national debt, but among foreign countries, Japan is the largest holder of U.S. debt, followed by the United Kingdom and China, who consistently rank as the top foreign creditors.