Inflation has eased around the globe but while real wages are growing in many nations, living costs and interest rates remain elevated. Needless to say, household debt, which includes mortgages, personal, auto and student loans, credit card balances and bank overdrafts, has climbed to record highs.

With billions of people grappling with sky-high expenses and steeper repayments, read on to discover the average household debt per working-age person (15-64 years) in 35 selected nations.

Our ranking is based on data from CEIC, the UN, the World Bank and other gold-standard sources. We've also included figures revealing collective household debt as a percentage of each nation's GDP, a strong indicator of how deep a country's debt problem runs.

All dollar amounts in US dollars.

Traditionally a nation of savers, India is seeing a dramatic shift. Household savings have plummeted to a 47-year low, while debt has surged to 17.4% of GDP, a significant leap from the 2.2% recorded at the end of the 20th century. However, the figure remains relatively minimal and translates to just $624 (£495) per working-age person.

The upswing in borrowing could be a positive indicator as it implies Indians are more optimistic about their future earning prospects. But it could also reflect growing financial distress. On the upside, the increased borrowing is concentrated among those with the highest credit ratings and mortgage delinquencies are down in the country. Yet wages remain below pre-pandemic levels and credit card default rates have increased, raising questions over the sustainability of the borrowing surge.

Household debt is also on the rise in the Philippines, though at just 11.3% of GDP, it remains super-low by global standards. However, loan delinquencies are increasing and elevated household liabilities pose a risk to consumer confidence, according to Fitch Solutions' subsidiary BMI.

On another note, the Philippines is the most unbanked country in this round-up. At the last count, a hefty 66% of Filipinos lacked a bank account – the figure stands at just 20% in India – so the country's comparatively low household debt isn't necessarily a positive indicator. Unable to borrow from legitimate providers, the poorest Filipinos often have to resort to unscrupulous loan sharks, which are all too prevalent in the country.

Household debt in Indonesia equates to a very modest 9.9% of GDP, down from the all-time high of 10.4% recorded in March 2021 when the COVID pandemic was raging.

This comparatively low figure can be partly explained by the fact that more than half the population is unbanked. But by Indonesian standards, household debt remains elevated, and the country is experiencing soaring digital lending debt driven by post-pandemic hardship and low levels of financial literacy, as reported by financial newspaper Nikkei Asia. A staggering two-thirds of the population have outstanding debt through digital lending platforms. Saddled with excessively high interest rates, many struggle to repay their loans and avoid a debt spiral.

Argentina mirrors Indonesia in terms of financial inclusion since 51% of the population in both countries lacks access to banking services. This, coupled with the country's notoriously high inflation and interest rates, plus the difficulty obtaining mortgages and other borrowing products, makes for very low levels of household debt, which represents a minuscule 4.5% of GDP, the lowest figure in this round-up.

Things are looking up for borrowers in the country, though. Inflation and interest rates are declining and loan delinquencies are stable, according to consumer credit reporting agency Equifax. Best of all, Argentina's real wage growth for the second quarter of 2024 was the second-highest in this round-up at 7.5%, which indicates a positive trend for consumer spending and debt repayment going forward.

Household debt in Peru is running at 15.9% of GDP. The figure is down from the all-time record of 18.2% in June 2020 during the pandemic but remains high by historical standards.

Given that 57% of the Peruvian population is unbanked, the figure is a cause for concern. Before COVID struck, credit repayments represented 24% of personal incomes in the country, according to Scotiabank. The number now stands at 32%. Moreover, loan delinquencies among non-bank and microfinance lenders have reached a 16-year high as individuals on low incomes find it increasingly difficult to meet their financial obligations.

Colombia is the fifth most unbanked country in this round-up, with 54% of the population lacking access to banking services. In light of this, household debt as a proportion of GDP is relatively high at 31.5%.

Financial delinquency is a major problem in the country and the issue has been exacerbated post-COVID due to mushrooming living costs and a shaky jobs market. Last year, a survey of Colombian consumers by credit reporting agency TransUnion revealed a concerning statistic: 33% of respondents anticipated difficulty paying at least one of their credit obligations in full.

Cost-of-living pressures are also prompting South Africans to take on more debt, according to TransUnion. Unsurprisingly, household debt as a percentage of GDP is creeping up in the country and now stands at 40.7%. It was, however, as high as 49.6% in September 2007.

The increased debt comes at a heavy cost. Elevated interest rates are adding to the financial strain households are under, and defaults have risen significantly over the past couple of years, according to the South African Reserve Bank.

Household debt in Mexico translates to 16.5% of GDP, which isn't far off the record figure of 16.9% recorded during the pandemic.

Mexico is the second most unbanked country in this round-up, with 63% of the population lacking access to banking services, which partly explains the country's relatively modest household debt levels. And while loan delinquencies have ticked up of late, they remain low by historical Mexican standards, implying that household debt is more or less sustainable in the nation.

This is borne out by data from the OCED, which shows that the typical Mexican household spends just 26.8% of its disposable income paying off debts. Additionally, Mexico has one of the best personal savings rates in the world.

Household debt as a proportion of GDP is running at a near all-time high in Russia, representing 20.4% of the country's annual output.

While wages have been growing at a rapid rate in the country, rampant inflation caused by the war in Ukraine is fuelling a borrowing explosion, with many Russians taking out expensive microloans to cover their basic needs, as per independent news platform Holod. This unsustainable reliance on borrowing, together with aggressive debt collection, is leading to a surge in bankruptcies, revealing the fragility of Russia's economic situation.

In contrast, household debt in Poland is considerably more sustainable despite representing a larger proportion of GDP at 23.5%, though the figure is much lower than the all-time high of 37.1% recorded in 2015.

The share of the population with overdue rent or mortgage payments is exceedingly low at just 0.8%. Adding to the good news is that real wage growth is among the highest globally. During the second quarter of 2024, salaries increased in real terms by an impressive 9.8%.

Household debt in Chile is among the highest in Latin America in relative terms, equating to 39.2% of GDP. While not record-breaking – an all-time high of 42.7% was recorded in March 2020 amid the pandemic lockdowns – the number is historically high.

Steep interest rates and living costs have squeezed Chilean households, which devote a large chunk of their disposable income to servicing debts. According to the OECD, the typical household in the country spends 69.9% of its disposable income on paying off debts, a much higher proportion than its counterpart in Mexico, who as we've mentioned, spends just 26.8%.

Household debt as a percentage of GDP has climbed to an all-time high in China, reaching 63.3% at the last count. The Bank for International Settlements suggests that negative effects on consumption begin above 60% and intensify beyond 77%, though this does depend on the specific economy. In any case, China's debt appears to be increasingly unsustainable as its economy splutters and unemployment grows.

Mortgage defaults have surged amid the ongoing property sector crisis and the number of people on the dreaded government debt blacklist increased by 50% between 2019 and 2024. The Chinese government comes down very harshly on citizens who are unable to pay their debts. Those in default are subject to a slew of draconian punishments, including being frozen out of digital payment apps, banned from using toll roads and even effectively prevented from going on holiday.

Household debt as a percentage of GDP is also at an all-time high in Brazil, standing at 35.7% in the second quarter of 2024. Although household liabilities and defaults have started to decline, they are notably high.

To make matters worse, servicing household debt has become more expensive in Brazil, with interest rates rising. The central bank rate is currently a stiff 13.25%, up from 12.25% in December 2024. As per the latest figures from January this year, the typical household is spending 30% of its income on debt repayments, up from 29.8% last December.

As a proportion of GDP, household debt in Greece is now at 46.2%, which is well below the record 78% recorded in December 2012 when the country was drowning in debt.

Nevertheless, household debt – or more specifically, household debt sustainability – remains a major issue in the country, with housing liabilities the standout problem. Greeks spend more of their disposable income on housing than other Europeans and the country has the highest rate of rent and mortgage arrears in Europe. As many as 8.6% of mortgages are classed as non-performing, meaning they're in default. In most European countries, the figure is under 2%.

Household debt levels in Spain have become a lot more sustainable in recent years. Debt as a percentage of GDP peaked at 89.7% in June 2010 when the country was enduring a painful financial crisis.

Since then, Spanish households have deleveraged en masse, and the figure is now down to 48.9%. However, real wages have experienced a decline since the pandemic and cost-of-living pressures caused a blip in the downward trend in 2024. Despite this recent setback, the overall trend of deleveraging suggests continued progress towards manageable household debt levels in the nation.

Italy has low household debt levels compared to other European countries. The household debt-to-GDP ratio has fallen since the pandemic when it reached a record high of 58.6% and now stands at 48%.

As noted by the Financial Times, Italian households tend to live within their means. Another factor contributing to their low debt levels is the proportion of disposable income spent on housing, which at 15% is among the lowest in Europe. And the country's non-performing loans ratio has fallen sharply in recent years, down from over 15% in 2015 to 3% in September 2024.

Japan's household debt as a percentage of GDP is currently one of the highest rates ever recorded, standing at 65.1%. Still, this is some way off the peak figure of 78.7% that was registered in 2000 at the end of the so-called Lost Decade when the Japanese economy stagnated.

Sluggish real wage growth and higher inflation and interest rates are making borrowing unsustainable for many in the country. According to the newspaper Business Standard, bankruptcies related to personal debt have been on the rise as the financial strain on households in the nation intensifies.

Household debt in Austria is modest compared to many other European nations, coming in at just 44.5% of GDP. The figure, which peaked at 55% in December 2010 and spiked during the pandemic, has since been trending down markedly.

Austrians' long-standing reputation for thriftiness and a culturally ingrained aversion to debt play a significant role, and the country's high savings rate is testament to this. Furthermore, renting is hugely popular in the country, which has the third-lowest rate of home ownership in Europe at 54.3%. This preference for renting results in a lower number of mortgages and consequently, an overall lower rate of household debt.

Germany's household debt-to-GDP ratio is also modest for a European nation. It stands at 50.3%, which is actually a record low.

Again, this comes down in large part to housing. Germany is even more of a nation of renters than Austria; the nation's home ownership rate is only 47.3%, the second-lowest in Europe, and the relative paucity of outstanding mortgages makes for lower household debt. Plus, house prices have been falling in Germany over the past couple of years, reducing the incentive for further borrowing.

South Korea is something of a paradox. While it has one of the highest savings rates in the world, household debt now sits at 93.7% of GDP. The figure peaked at 101.9% in September 2021 but is still much higher than it was pre-pandemic.

Real wages in 2024 fell for the third year in a row, piling the financial pressure on households. CNBC suggests the wide use of credit cards in the country and its unique 'jeonse' rental system are likely to blame for its excessive household debt levels; instead of monthly rents, South Koreans have to pay a huge deposit equal to between 50% and 80% of the value of the property they're leasing. The deposit is returned to the renter at the end of their tenancy but it often necessitates taking out substantial loans, contributing massively to household debt.

Despite a minor blip last year, Belgium's household debt-to-GDP ratio has been falling since March 2021 when it peaked at 67.6%. The latest figure is 59%.

Decent real wage growth is among the factors driving down household debt in the country. There just isn't a pressing need for working-age people in the country to borrow. Given this, it's hardly surprising that household spending has remained solid, according to financial services company Allianz. As previously mentioned, negative effects on consumption tend to dissipate when the household debt-to-GDP ratio falls below 60%.

Household debt is much more of a problem in the UAE. While the nation's figure as a percentage of GDP is down from 124.1%, which was recorded at the height of the pandemic, it remains eye-wateringly high at 106.2%.

Factors driving this debt include a culture of overconsumption, with many Emiratis living beyond their means. Cost-of-living pressures have intensified too, and while salaries are rising, making ends meet has become tough for many, prompting some to borrow further to maintain their lifestyle.

Ireland's household debt-to-GDP ratio is modest by European standards at just 31.7% of GDP, though it's important to point out that Ireland's annual output is inflated by the large number of multinationals reporting profits in the country.

Nonetheless, the figure was as high as 123.2% in 2009. Housing costs account for only 17% of the typical disposable income in the country, which is comparatively low, and the level of household savings is 52% higher than household debt, which suggests that the debt is reassuringly sustainable.

France's household debt-to-GDP ratio has been coming down since the end of 2020 when it hit a record 81%. The figure now sits at 74.2%, which is only slightly higher than the pre-pandemic number.

While cost-of-living pressures have led to an increase in those seeking debt relief in the country, French households have plenty in their favour, including one of Europe's lowest average mortgage rates.

Singapore's household debt as a proportion of GDP has hit a record low of 52.4%. Its all-time high figure was 96% back in 2003.

Household debt became significantly more sustainable in 2024. Though debt actually rose in nominal terms due to cost-of-living pressures, wages and financial assets grew at a more rapid pace than inflation, offsetting the impact of rising prices and enhancing household financial health, according to the Monetary Authority of Singapore.

New Zealand's household debt-to-GDP ratio is down from its pandemic peak of 98.5%, but at 89.9% the figure remains very high.

The number was as low as 27.9% in 1990. Since then, house prices have massively increased and elevated housing costs are the chief driver of household debt in the country. With interest rates historically high, this debt is less sustainable than it once was. However, as per Equifax, most people are still paying off their mortgages on time and while loan delinquencies have increased, they haven't reached alarming levels.

The UK's debt-to-GDP ratio is among the highest in Europe at 81.5%. However, the figure has been falling since the pandemic and is considerably lower than the record 108.5% recorded in March 2010.

Britain's expensive house prices are behind its relatively large levels of household debt. But despite increased cost-of-living pressures and elevated interest rates, the proportion of mortgages in arrears is low according to Equifax, at 1.11% of homeowner mortgages and 0.69% of buy-to-let products, while overall loan delinquency and bankruptcy rates are stable. No doubt this is partly thanks to the nation's comparatively robust real wage growth.

In contrast to the nation's government debt, which stands at a worrying 124% of GDP, US household debt is considerably more manageable at 62.3%, well below the peak of 85.8% recorded in December 2008 amid the subprime mortgage crisis.

In spite of healthy real wage growth, credit card debt has climbed to a record high as living cost pressures continue, and credit card delinquencies, as well as auto loan defaults, are elevated. But mortgage delinquencies are stable, remaining under 1% since the start of the pandemic. The vast majority of US mortgages are fixed rate, usually for 30 years, so homeowners with this type of product haven't been affected by increased interest rates. By way of comparison, the delinquency rate reached 8.9% at the height of the subprime mortgage crisis.

Sweden's household debt-to-GDP ratio reached a record high of 98.4% in March 2021. It's since fallen to 86.2% but remains elevated by historical standards.

Again, excessive house prices have fuelled increased household debt in the country. That said, Sweden's relatively high levels of household debt appear sustainable. For instance, the country has very high personal savings rates. In 2024, the typical Swede saved over 25% of their income in the most recent year, compared to just 10% for Brits and under 5% for Americans.

Canada's household debt as a percentage of GDP is much higher than America's. While it's down from the peak of 111.2% recorded during the pandemic, at 99.2% the figure remains very high – the highest among G7 countries, in fact. Way back in 1969, it stood at just 30%.

Mortgage debt due to Canada's steep house prices is the major driver, though it remains relatively healthy, as per TransUnion. But as living costs have increased, Canadians have been borrowing more on their credit cards and taking out additional loans. And this, combined with high interest rates, has led to a rise in non-mortgage delinquencies in the country.

Denmark's debt-to-GDP ratio is high at 92.2%. But the number is considerably lower than the all-time high of 149.1% recorded in December 2009.

Mortgages in Denmark are among the cheapest in Europe and are based on 30-year bonds, which has encouraged high levels of home ownership and, therefore, high levels of household debt. Fortunately, this debt is comparatively sustainable. Savings rates in the country are excellent and wages now match inflation, alleviating the financial strain on Danish households.

The Netherlands also has high levels of household debt, representing 97.4% of GDP. However, this figure is considerably lower than the peak of 136.7% recorded in March 2011.

Once again, mortgage debt is the chief driver. According to the nation's central bank, no other European country has a higher proportion of the population with a mortgage loan. Thankfully, most mortgages in the country are fixed-rate over long periods, so higher interest rates haven't led to a significant rise in defaults. Plus, real wage growth has been impressive in the country, offsetting any issues arising from elevated inflation and interest rates.

Household debt has been described as Australia's Achilles' heel. In relation to GDP, it currently sits at a whopping 116.6% – only one other country records a higher figure. Still, this number isn't record-breaking, with the figure maxing out at 129.4% in September 2016.

Over the years, household debt in Australia has risen in tandem with wealth, so servicing the debt hasn't been a major issue even amid higher inflation and elevated interest rates. Delinquencies have increased but at a slow pace, while mortgage defaults have remained remarkably stable. However, the high levels of debt could pose a problem if the country's economy were to falter and unemployment increase.

Norwegian households are also highly indebted. This debt, as a proportion of GDP, stands at a sky-high 90.7%, though this is lower than the record number of 116.3% seen during the height of the pandemic.

Luckily, Norway's household debt is sustainable. As per Norges Bank, the majority of households in the country have been able to service their debts despite higher inflation and interest rates, thanks to factors such as generous wages and bountiful savings.

Switzerland has relatively modest government debt, but its household debt as a percentage of GDP is the highest in the world at an enormous 128.2%. The figure was even higher during the pandemic when it hit a record 137.1%.

Despite relatively low levels of home ownership, Switzerland's household debt is largely driven by mortgage debt, and house prices are very high in the country. Another key driver is the country's steep healthcare costs. But while a reported 11.5% of Swiss households are behind with at least one repayment, household debt in the country is generally manageable thanks to high wages and the substantial personal wealth of its citizens.

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