Global And Household Debt Up

Two stories in one.

Global debt is up to 336% of GDP. Debt is three times higher than Gross Domestic Product. Small dips have been happening, but we’re a long way from GDP exceeding debt payments. Inflation makes it worse.

“To meet debt payments, at least 100 countries will have to reduce spending on health, education and social protection, the IMF estimates.“

On a more personal level, the graph shows that household debt has also been rising, again worsened by inflation. What may be more significant is what was not reported. Many attitudes about money and personal finance were established decades ago. According to the graph, household debt was relatively insignificant in 1950. It remains smaller than public and corporate debt, but is now a significant component of total debt. On a personal finance level, advice that worked then may not work now.