House for debt as share of GDP #Bondi #SDNY #Epstein #Steph #Tate #PaoloHungCao #NOAA #Starmer #TheFBI #Phase1 #PamandKash #NationalWeatherService pic.twitter.com/9XsBVsrF4W
— facting (@facting182168) February 28, 2025
Spanish families owe nearly half their country’s GDP. Turkey? Just 11%. I analyzed 2024’s debt data – the patterns reveal how culture, policy, and crisis shape financial survival.
2024 Household Debt Rankings: Who Owes What
- 🇪🇸 Spain: 48% – Mortgages haunt post-2008 crisis. Youth rent forever, elders cling to overpriced homes.
- 🇮🇹 Italy: 39% – Tax evasion “saves” households but starves public services. Debt hides in cash economies.
- 🇮🇳 India: 37% – Farm loans + urban credit cards. Micro-debt traps explode.
- 🇿🇦 South Africa: 34% – Payday loans at 60% APR. 18 million indebted to loan sharks.
- 🇧🇷 Brazil: 34% – Credit card roulette: 300% annual rates. Pay minimums till death.
- 🇸🇦 Saudi: 32% – Oil wealth fades. Millennials swipe for luxury cars they can’t maintain.
- 🇷🇺 Russia: 22% – Cash-only mindset persists. Banks? “For suckers.”
- 🇮🇩 Indonesia: 16% – Family networks > banks. Need $500? Cousins chip in.
- 🇲🇽 Mexico: 16% – 68% lack bank accounts. Debt stays informal.
- 🇹🇷 Turkey: 11% – Hyperinflation kills lending. Cash under mattresses rules.
Debt Culture: Survival vs. Suicide
- Cash is king (Russia/Turkey): Distrust banks → lower debt → slower growth
- Credit addiction (Spain/Brazil): Easy loans → temporary growth → long-term collapse
- The informal fix (Mexico/Indonesia): Family safety nets prevent defaults but limit mobility
5 Lessons From Low-Debt Nations
- Embrace cash culture (Turkey): If banks exploit, hide money in socks
- Family first (Indonesia): Pool resources, avoid predatory lenders
- Limit credit access (Russia): No credit scores? No debt spiral
- Teach financial trauma (Spain): Post-2008 kids refuse mortgages
- Regulate ruthlessly (Saudi): Caps on personal loans dropping debt 7% yearly
FAQs: Debt Realities Unmasked
“Why is Turkey’s debt so low?”
Lira crashes made banks untrustworthy. 80% of transactions are cash. No credit, no debt.
“Is household debt always bad?”
Japan’s debt is 120% of GDP but stable. Key: Low rates + salarymen lifetime jobs. Context matters.
“How to protect myself?”
Copy Indonesians: Build a 10-person money pool. Need $1k? Get $100 from 10 friends. No interest.
The Bottom Line: Debt Isn’t Math, It’s Psychology
Spaniards borrowed for homes that became cages. Turks hoard cash but can’t build credit. Your move: Learn from both. Use debt as a tool, not a trap. Or stuff euros in your mattress – your call.
