10 Countries with the Worst National Debt — And How it Can Hit Your Wallet

The issue of national debt is a critical one, affecting not just the economic stability of a country but also the financial well-being of its citizens. Here, we delve into the top 10 countries grappling with the most significant national debt, examining the implications for individuals’ finances.

• Per Capita Debt: $98,094
• Total External Debt: $32.9 trillion
• Debt to GDP Ratio: 122.56%
• Debt as % of Total Wealth: 23.52%

The colossal debt of the United States impacts its citizens through potential tax increases, reduced public services, and could lead to inflation, affecting purchasing power.

• Per Capita Debt: $46,754
• Total External Debt: $3.241 trillion
• Debt to GDP Ratio: 96.5%
• Debt as % of Total Wealth: 54.47%

The UK’s high debt level could lead to austerity measures, impacting public services and welfare, potentially increasing the cost of living for its residents.

• Per Capita Debt: $34,832
• Total External Debt: $4.34 trillion
• Debt to GDP Ratio: 98.44%
• Debt as % of Total Wealth: 19.22%

Japan’s debt could result in higher taxes and reduced government spending on healthcare and pensions, directly affecting the elderly population.

• Per Capita Debt: $215,569
• Total External Debt: $3.79 trillion
• Debt to GDP Ratio: 381.62%
• Debt as % of Total Wealth: 77.84%

The Netherlands faces the risk of decreased investment in public infrastructure and social programs, potentially leading to higher costs for education and healthcare services for its citizens.

• Per Capita Debt: $49,767
• Total External Debt: $3.28 trillion
• Debt to GDP Ratio: 112.06%
• Debt as % of Total Wealth: 20.86%

In France, the national debt may lead to tightening government budgets, affecting unemployment benefits and social services, directly impacting the livelihood of its citizens.

• Per Capita Debt: $628,505
• Total External Debt: $3.26 trillion
• Debt to GDP Ratio: 548.53%
• Debt as % of Total Wealth: 357.06%

Ireland’s significant debt per capita could result in stringent fiscal policies, reducing disposable income and possibly leading to higher interest rates for loans and mortgages.

• Per Capita Debt: $52,674
• Total External Debt: $3.1 trillion
• Debt to GDP Ratio: 143.09%
• Debt as % of Total Wealth: 28.13%

Italy’s debt situation may cause increased taxation and reduced public sector investment, affecting employment rates and economic growth, impacting citizens’ job security.

• Per Capita Debt: $33,566
• Total External Debt: $2.81 trillion
• Debt to GDP Ratio: 65.33%
• Debt as % of Total Wealth: 16.13%

Though lower in comparison, Germany’s debt could still lead to cautious government spending, potentially affecting subsidies and benefits for its citizens.

• Per Capita Debt: $66,929
• Total External Debt: $2.65 trillion
• Debt to GDP Ratio: 126.94%
• Debt as % of Total Wealth: 23.53%

Canada’s national debt may result in reduced healthcare and education funding, directly affecting the quality of life and future opportunities f

• Per Capita Debt: $1,736
• Total External Debt: $2.45 trillion
• Debt to GDP Ratio: 13.55%
• Debt as % of Total Wealth: 2.90%

Despite its low per capita debt, China’s growing external debt could lead to tighter monetary policies, affecting investment and consumption patterns within the country.

The national debt of a country is more than just a number; it’s a reflection of potential future policies that can directly impact the wallets of its citizens through taxes, interest rates, and government spending. As these countries navigate their financial challenges, the effects will be felt by individuals in their daily lives, from the cost of living to the availability of public services.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.