Who does the US owe money to?

The U.S. owes money to a mix of domestic and foreign entities, primarily: domestic investors (like mutual funds, banks, and the Federal Reserve), government trust funds (intragovernmental debt), foreign governments (especially Japan and China), and individual investors worldwide. This debt is held as Treasury securities, meaning many Americans' retirement funds (401ks, pensions) indirectly own a portion of it, alongside large institutional and international holders.

Who does the US owe its debt to?

In December 2021, debt held by the public was estimated at 96.19% of GDP, and approximately 33% of this public debt was owned by foreigners (government and private). The ratio of debt to GDP may decrease as a result of a government surplus or via growth of GDP and inflation.

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.

Does the US owe money to China?

China owns approximately $859.4 billion in U.S. debt, about 2.6% of the total U.S. debt. Japan surpasses China as the top foreign holder of U.S. debt, with $1.1 trillion. The U.S. government itself holds the largest portion of U.S. debt, primarily through trust funds.

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

Answer and Explanation:

If the U.S. was to pay off their debt ultimately, there is not much that would happen. Paying off the debt implies that the government will now focus on using the revenue collected primarily from taxes to fund its activities.

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

Why can't the US get out of debt?

We have slower income growth, so we have fewer resources with which to pay our debt. Paul Solman: That is fewer tax revenues, which would mean borrowing even more. Plus, lower growth means less demand from businesses to borrow money for investment, which also tends to lower rates.

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.

What country owes the US the most money?

As of April 2025, the list of foreign countries holding U.S. debt is dominated by just three: Japan, the United Kingdom and China. China was formerly the No. 2 holder of U.S. debt, but as the country has been decreasing its holdings over the past few years, the U.K. has taken over that position.

Why is the US so heavily in debt?

The federal government needs to borrow money to pay its bills when its ongoing spending activities and investments cannot be funded by federal revenues alone. Decreases in federal revenue are largely due to either a decrease in tax rates or individuals or corporations making less money.

How much does the government owe for social security?

As of December 2022 (estimated), the intragovernmental debt was $6.18 trillion of the $31.4 trillion national debt. Of this $6.18 trillion, $2.7 trillion is an obligation to the Social Security Administration.

Who was the last president to balance the US budget?

Today, at a White House event, President Clinton announces that the federal budget, which had run at a deficit for 29 years, has been balanced, and will run a surplus of roughly $70 billion for the fiscal year that ends today. Closing The Book On A Generation Of Deficits.

Who borrowed from Social Security?

Bush 'borrowed' $1.37 trillion of Social Security surplus revenue to pay for his tax cuts for the rich and his war in Iraq and never paid it back”.

Who owns the 35 trillion in US 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.

Who lends U.S. money?

Federal Borrowing

The federal government borrows money from the public by issuing securities—bills, notes, and bonds—through the Treasury. Treasury securities are attractive to investors because they are: Backed by the full faith and credit of the United States government.

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.

Who holds US debt in 2025?

At the end of June 2025, 25.2% of US debt was owned by governments, corporations, and people outside of the US. This was 8.9 percentage points lower than the 2013 peak of 34.1% and 1.4 percentage points higher than June 2024.

Can the US ever pay off its debt?

Eliminating the U.S. government's debt is a Herculean task that could take decades. In addition to obvious steps, such as hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial. Below are some of these options.

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

Medical Bills

Unexpected medical expenses are one of the leading causes of debt in the U.S. Even with insurance, deductibles, co-pays, and out-of-pocket costs can quickly add up.

Is the national debt really a problem?

Extraordinarily low interest rates allow the U.S. to shoulder a heavier debt burden, but the debt is on an unsustainable course and its size may limit the government's ability or willingness to continue to fight the economic ill effects of the pandemic or future economic downturns.

What happens if China dumps all U.S. Treasuries?

If China (or any other nation that has a trade surplus with the U.S.) stops buying U.S. Treasuries or even starts dumping its U.S. forex reserves, its trade surplus would become a trade deficit—something which no export-oriented economy would want, as they would be worse off as a result.

What is the most indebted country in the world?

The U.S. ($38.3T) and China ($18.7T) are the two countries with the most government debt, and together make up just over half of the world's total debt ($110.9T). The top five countries make up 67% of the world's government debt, while the top 10 make up 81%.

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.

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.

Which gender has more debt?

Men have 2 percent more credit card debt than women. Men have 9.7 percent more mortgage debt than women. Men have 20 percent more personal loan debt than women. Women have 2.7 percent more student loan debt than men.

Is $20,000 in credit card debt a lot?

U.S. consumers carry $6,501 in credit card debt on average, according to Experian data, but if your balance is much higher—say, $20,000 or beyond—you may feel hopeless. Paying off a high credit card balance can be a daunting task, but it is possible.