In today’s economy, debt plays a major role in shaping spending and survival strategies, with Americans standing out globally for their unique and costly borrowing habits. Let’s explore 10 such key differences that show how American debt culture breaks from international norms.
Americans Carry More Credit Card Debt Than Most
According to a study conducted by LendingTree, U.S. households averaged over $6,921 in credit card and bank card debt in 2024. Japan and Germany, by comparison, carry less than half of that amount per household. This wide gap also highlights key differences in financial systems and consumer behavior toward debt.
U.S. Student Loan Debt Is A Global Outlier
Americans owe over $1.7 trillion in student loans, with graduates averaging $37,000 in debt. On the other hand, it is believed that most European nations offer low-cost or free tuition. Sweden and the UK even tie repayment to income, unlike the U.S. system’s heavier upfront burden.
Car Loans Are Far More Common In The U.S.
In Germany, only about 47% of buyers use car financing. However, roughly 85% of all new U.S. vehicles are financed, often through long-term loans lasting 5 to 7 years. Americans also take on more auto debt and pay interest well beyond the car’s resale value.
Americans Use Debt To Fund Everyday Living
One in three Americans reports using credit just to cover basic living costs. As of 2023, total consumer debt in the U.S. reached $17.5 trillion. By contrast, many European economies depend more on cash and savings rather than using credit for essentials like food and rent.
U.S. Mortgage Debt Is Sky-High
Switzerland relies less on mortgage borrowing per capita and has a more cautious long-term lending culture, despite facing high property prices. On the other hand, the average American mortgage balance exceeds $236,000. Even then, homeownership in the U.S. is lower than in many developed countries.
American Interest Rates Are Among The Highest
Credit card interest rates in the U.S. mostly surpass 20%, far higher than rates in Europe. On the contrary, France and the Netherlands average between 12% and 14%. This means Americans pay significantly more over time to borrow the same amounts on revolving credit
Debt As An Investment vs. Debt As A Necessity
In places like Canada or Singapore, borrowing often supports investment goals. In the U.S., debt is frequently used out of necessity—covering essentials, not growth—shaping repayment behavior, financial stress, and long-term opportunities in profoundly different ways
Debt Is A Cultural Norm In The U.S
Many Asian cultures view debt as shameful, with countries like Japan and South Korea emphasizing savings over borrowing in everyday financial decisions. Meanwhile, the American media portrays borrowing as a smart lifestyle choice. “Buy now, pay later” options are also aggressively marketed, especially online.
U.S. Medical Debt Is Practically Unheard Of Abroad
About 40% of adults in the U.S. carry medical debt, and emergency room visits alone can cost thousands, even with insurance. That’s quite different from countries like Australia, which provide universal healthcare coverage that significantly limits or eliminates personal medical-related debt.
Americans Refinance More Frequently
Many U.S. mortgage holders refinance within 5 years, mostly to adjust rates or cash out equity. Countries with fixed-rate mortgage systems, like Denmark, see less refinancing. Americans frequently reset the length of their loans and extend their debt horizon with each refinance cycle.
