Americans face significant financial burdens, raising the question of how their debt compares to that of households in other nations. According to the International Monetary Fund, the United States had a household debt-to-GDP ratio of 72.93% in 2022.
This is lower than in other developed countries, but it still represents significant financial pressure on American families. Read on for details on where the U.S. stands compared to other nations grappling with debt. If you’re skimming, at least don’t miss Slide 19 — it’s packed with the essential summary and takeaways.
Switzerland
According to Trading Economics, Swiss households hold the highest relative debt levels globally, with an astounding household debt-to-GDP ratio of 126% as of September 2024. Housing costs play a pivotal role here.
Real estate in Switzerland ranks among the most expensive globally, with urban centers such as Zurich and Geneva often leading international property prices. According to UBS’ Global Real Estate Bubble Index, Zurich is among the priciest markets in the world, leaving many Swiss families heavily dependent on mortgages.
Australia
Australia ranks high internationally in household debt, with a household debt-to-GDP ratio exceeding 110% in 2024. This means Australian households owed more than the value of the entire economy. Families face one of the most expensive real estate markets globally, with Sydney and Melbourne frequently ranking among the least affordable housing markets.
According to financial expert Leith van Onselen from MacroBusiness, “the Australian obsession with owning property has led to unsustainable levels of household leverage.”
Canada
In December 2024, Canada’s household debt reached 99.0% of the country’s nominal GDP, driven by high housing prices in cities like Toronto and Vancouver. The Canada Mortgage and Housing Corporation (CMHC) has long warned about the risks of over-leveraged homeowners.
Rising interest rates in 2024 have further strained finances, prompting many homeowners to reassess their budgets.
Netherlands
The Dutch have structured their household finances around substantial mortgage debt, supported in part by tax benefits related to home ownership. The mortgage interest deduction policy has incentivized families to borrow heavily to purchase homes.
In September 2024, household debt in the Netherlands was 94.2% of GDP. Despite these high debt levels, low interest rates have historically mitigated the burden on Dutch households.
South Korea
South Korea’s rapid urbanization and intense focus on property ownership have significantly contributed to household indebtedness. In 2024, South Korea’s household debt to GDP ratio reached 91.7%, the second highest among major countries.
According to data from the Bank of Korea, much of this debt stems from housing-related loans. Economic analysts note that younger generations are particularly affected, feeling pressured to buy property early in life despite soaring home prices.
New Zealand
New Zealanders are no strangers to housing affordability crises. In September 2024, household debt represented 89.9% of the country’s nominal GDP, with mortgage debt dominating household borrowing.
Property prices in Auckland and Wellington remain among the highest globally. The Reserve Bank of New Zealand’s efforts to cool the housing market have had mixed results, leaving many families still struggling with extensive mortgage commitments.
Hong Kong
Hong Kong often tops lists of cities with astronomical property prices. The limited availability of land, coupled with high demand, has driven families to rely heavily on home loans.
In December 2024, Hong Kong’s household debt-to-GDP ratio was 87.8%. The territory’s economic model prioritizes housing as an investment, further exacerbating residents’ debt issues.
Thailand
Thailand’s household debt stems from a mix of consumer loans and mortgages. Though not as housing-centric as some other nations, Thailand has faced challenges with credit or personal loans.
In the final quarter of 2024, Thailand’s household debt-to-GDP ratio was 88.4%. Data from the Bank of Thailand suggests that many Thai citizens struggle with debt due to straightforward accessibility to credit without corresponding financial education.
Norway
Norwegian households enjoy high living standards, but this comes with significant borrowing. Much of the debt is housing-related, enabled by the country’s financial institutions offering favorable mortgage terms.
In December 2024, Norway’s household debt was 91.3% of the country’s nominal GDP. However, rising interest rates have prompted households to reassess their debt obligations in recent years.
Denmark
Denmark has strong social safety nets, but the country has one of Europe’s highest household debt levels. Most of this debt originates from mortgages, where interest-only loans are prevalent.
Denmark’s household debt-to-GDP ratio was 87% as of September 2024. Despite high debt ratios, economists highlight Denmark’s strong economic fundamentals and lower risk of financial instability among borrowers.
Sweden
Swedish households face substantial indebtedness, driven by rising property prices and the availability of consumer credit. In September 2024, Sweden’s household debt-to-GDP ratio was 86.2%, according to CEIC Data.
The Swedish Financial Supervisory Authority continues monitoring the nation’s borrowing levels, but many families have become accustomed to leveraging debt daily.
United Kingdom
UK residents carry high levels of both mortgage and consumer debt. Housing in London and southeastern England frequently outstrips affordability, forcing families to take on considerable debt. Recent inflationary pressures have also led to a surge in credit card usage among British households.
In the third quarter of 2024, United Kingdom household debt decreased to 77% of GDP, down from 77.20% in the second quarter. This means that UK households owe 77p in debt for every pound of GDP. The debt-to-income ratio, which compares household debt to disposable income, was 118.1% in Q4 2024.
United States
In the fourth quarter of 2024, American families ranked 13th globally, with household debt accounting for 61.7% of the country’s nominal GDP. Mortgages for homeownership constitute the most significant share, followed closely by student loans and credit card debt.
According to the Education Data Initiative, total student loan debt reached $1.777 trillion by the end of 2024 Q4, with $1.693 trillion coming from federal student loans.
Malaysia
In 2024, Malaysia’s household debt reached RM1.63 trillion, or 84.2% of GDP, supported by accessible home financing options. Despite this, household financial assets totaled RM3 trillion, far exceeding the debt level, according to the Finance Ministry.
However, consumer loans have also risen, with the Central Bank of Malaysia cautioning against overleveraging.
Japan
Japanese households manage moderate debt levels compared to Western nations. In December 2024, Japan’s household debt was 65.1% of its nominal GDP. Cultural values emphasizing frugality and aversion to debt play a vital role in this trend.
Additionally, household borrowing is tightly regulated, creating a balanced financial ecosystem.
Luxembourg
Luxembourg may be one of the world’s wealthiest nations, but high living costs encourage households to borrow significantly. In 2024, Luxembourg’s household debt accounted for 64.5% of the country’s nominal GDP.
Mortgage loans dominate household debt, with many families leveraging Luxembourg’s economic prosperity to invest in property.
Finland
In 2024, Finnish household debt reached 63.7% of the country’s GDP. Like other Nordic countries, mortgage loans remain the primary form of household borrowing.
Even in economically stable nations, the influence of real estate on financial behavior is apparent.
Key Takeaways
The United States ranks 13th globally for household debt-to-GDP at 61.7%, with mortgages, student loans, and credit cards forming the bulk of this burden. But Americans aren’t alone—countries like Switzerland (126%), Australia (110%), and Canada (99%) face even higher ratios, often driven by soaring housing costs.
A standout statistic: Swiss families carry more than double the debt burden of Americans relative to GDP, primarily due to some of the most expensive real estate in the world. In contrast, Japan maintains one of the lowest ratios at 65.1%, thanks to cultural values that discourage excessive borrowing. These figures reveal that while debt is a global challenge, how it’s accumulated and managed varies widely by nation.
Disclaimer – The Finance Key does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. The inclusion of links to third-party content is not an endorsement by The Finance Key of such content or services. Please do your due diligence and use your discretion.
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