With inflation and interest rates high in many parts of the world, household debt – ranging from mortgages to credit card debt – is reaching record highs.
Statistics based on data from CEIC Data, the World Bank and national central banks in 26 surveyed countries show average household debt per person of working age (15-64 years old).
Philippines: Debt of $567 per working-age person
Household debt in the Philippines is just 10.1% of the country's GDP, extremely low by global standards. While this low debt ratio has been called a "miracle" by some, it is anything but.
Poverty is widespread in the Philippines and buying property is out of reach for many people living there, meaning home ownership and mortgages are relatively rare – so this data doesn't take into account debt.
Furthermore, an estimated 40% of Filipino adults do not have bank accounts and have limited access to credit, while loan sharking is poorly regulated.
Mexico: Debt of $3,142 per working-age person
Like many other developing countries, Mexico also has very low household debt, accounting for just 16.2% of national GDP.
Again, this is largely due to very limited financial inclusion. Only 20% of Mexicans have access to credit and only 10% are said to own credit cards.
Russia: 3,696 USD
Household debt remains low (as of June 2023, the most recent month for which reliable data are available), at 20.2% of GDP. This is partly because relatively few Russians have mortgages, while savings rates are quite high.
China: 11,114 USD
At 63.3% of GDP, China's household debt is rapidly approaching the 65% red line that the International Monetary Fund (IMF) identifies as a warning sign of financial instability.
Much of this debt consists of mortgages. With the housing market in a slump, consumer spending is falling as they choose to save rather than spend.
The explosion of easy credit left many people with large unsecured debts.
Japan: 39,462 USD
Household debt is rising in Japan. Consumer debt in particular hit a record high in 2023, partly due to the boom in digital lending.
As a result, the country's household debt-to-GDP ratio has risen to 67.2%. However, this figure is still lower than the peak of 78.7% in 2000, after the financial recession of the 1990s (also known as the "Lost Decade").
Germany: $43,440
Germany has the second lowest level of home ownership in Europe and relatively low mortgage numbers help keep German household debt at a manageable 54.3% of GDP.
US: 78,869 USD
At more than $17 trillion, total US household debt is the highest in the world, with credit card debt surpassing $1 trillion for the first time last year.
Americans are borrowing more than ever to cope with inflation and high interest rates.
Despite rising borrowing, the country's household debt-to-GDP ratio fell to 64.1% in 2023, just below the danger threshold.
Switzerland: $189,236
Not only does Switzerland have the highest household debt per working-age person in the study, it also has the largest household debt-to-GDP ratio, at 128.4%.
On the brighter side, the country also has the highest per capita wealth, which helps keep debt levels sustainable. But cracks are starting to appear.
Poverty is rising in the wealthy country, with rent costs a major factor, according to a report by SwissInfo. Switzerland has a low rate of home ownership, but rents are tied to interest rates, so last year's price increases hurt both renters and mortgage borrowers.
