If you want to start up a tech business, you may be tempted to take out loans or use credit cards.
There are huge debates about why Americans have taken on so much debt. There are medical debts, student loans, and credit card debt.
It makes you wonder how Americans compare with the country with the most debt. Read on to find out what that country is and how Americans stack up.
The Country With the Most Debt
In 2018, American consumer debt hit an all-time high of $13.3 trillion, yes trillion, in the fourth quarter alone. About $834 billion was credit card debt.
There really isn’t any other country with the most debt that comes close to the U.S. in terms of credit card debt. Canada would be second, with Australia ranking third.
If you’re lucky enough to live in Canada and have a Chase credit card, you’ll have that debt forgiven. The company left the Canadian market and decided it was easier to forgive the debt.
The most interesting thing is European countries don’t really rank when it comes to credit card debt. The reason why is in some countries, you don’t need it.
In Spain, for example, the cost of living is so low, you can pay cash for everything. To charge a $2 coffee is unheard of there. It’s a huge difference when you compare it with the credit card culture in the U.S. Hardly anyone carries cash anymore and more businesses are going cashless.
African countries don’t make the list because credit card companies aren’t focused on introducing credit cards to these markets. Instead, financial institutions are introducing payment systems to make payment and transfers easier.
The only exception is in South Africa. Demand for credit cards has increased. People who do have credit cards are having some trouble paying off the balance.
Learning How to Use a Credit Card
Are there lessons you can take from these other countries and apply them to your credit card debt? Absolutely.
Americans use credit cards for everything. People in other countries, like China, use credit cards only for large purchases. You want to use your card sparingly instead of for everyday purchases.
In Singapore, they have a big debt problem where credit card debt is S$70 billion. The issue is people are spending beyond their means.
You want to make sure you have a credit card that doesn’t have a high-interest rate. If you do need to spend on your credit card, compare different cards and look for the best Standard credit card.
Learning How to Manage Debt
When you look for the country with the most debt, you can find a lot of answers. If you’re searching for the highest amount of credit card debt, look no further than the U.S.A.
Americans love to use plastic, and they have a buy now, pay later mentality. When you have that with lower and stagnant incomes, you have a recipe for a high amount of credit card debt.
If you’re using credit cards to finance a startup, you need to make sure you have a plan to pay that balance off each month. Otherwise, you could be in trouble.
Want more tips? Check out the startup section of this site for more great content.