Global household debt has exceeded $55 trillion worldwide – more than the combined GDP of the United States and China. A new study by a loan company analyzed household debt data across multiple countries to identify which nations live most on credit and where debt-to-income ratios pose the greatest financial risks.
The research analyzed household debt across multiple countries using official economic data, including debt-to-GDP ratios, population figures, and average salaries. Total household debt was calculated and converted to per capita amounts, then compared against yearly incomes to determine loan-to-income ratios. Countries were ranked by these ratios, with figures above 100% indicating households owe more than their annual earnings
Here’s a look at the top 10 countries living most on credit:
| Country | Household debt, loans and debt securities per capita | Average Yearly Net Salary | Loan-to-income ratio |
| Norway | $74,629.74 | $43,955.28 | 169.79% |
| Australia | $70,348.47 | $43,060.44 | 163.37% |
| Canada | $54,572.63 | $34,609.56 | 157.68% |
| Switzerland | $124,785.99 | $86,807.04 | 143.75% |
| Denmark | $59,926.00 | $47,495.64 | 126.17% |
| Sweden | $45,796.27 | $37,528.32 | 122.03% |
| Luxembourg | $87,235.44 | $72,789.24 | 119.85% |
| New Zealand | $43,987.51 | $36,810.84 | 119.50% |
| Netherlands | $53,430.77 | $45,433.20 | 117.60% |
| United States | $58,215.12 | $51,881.16 | 112.21% |
You can access the complete research findings here.
Norway ranks first with the highest 169.79% loan-to-income ratio, meaning the average Norwegian owes nearly 70% more in household debt than they earn annually. With $74,630 in per capita debt against an average yearly salary of $43,955, Norwegian households are the most credit-dependent globally.
Australia takes second place with a debt burden of $70,348 per capita that far exceeds the average Australian income of $43,060. The imbalance creates a 163.37% debt-to-income ratio. This means the typical Australian household owes $27,288 more than their yearly income.
Canada holds third place with average yearly incomes of $34,610. When measured against per capita debt of $54,573, this income shortfall produces a 157.68% loan-to-income ratio and means the average Canadian has nearly $20,000 more in debt than they earn annually – a debt excess of $19,963 per person.
Switzerland ranks fourth despite having the highest absolute per capita debt at $124,786. However, Swiss salaries average $86,807 annually, resulting in a more manageable 143.75% debt-to-income ratio compared to the top 3. Still, Swiss households owe $37,979 more than their annual income on average.
Denmark comes in fifth with a 126.17% debt-to-income ratio. Danish households carry $59,926 in per capita debt compared to average yearly earnings of $47,496. The Nordic country still shows a debt excess of $12,430 per person, despite having one of the highest salaries in the top 10.
Sweden takes sixth place. Swedish per capita debt of $45,796 is $14,000 lower than neighboring Denmark, yet Swedes earn $10,000 less annually at $37,528. This income disadvantage results in a 122.03% loan-to-income ratio, with Swedish debts exceeding incomes by $8,268 per person.
Luxembourg ranks seventh despite having the second-highest per capita debt globally at $87,235 – nearly double the debt load of several higher-ranked countries. Luxembourg’s high average salary of $72,789 (the second-highest in the list) keeps the debt-to-income ratio at a more manageable 119.85%.
New Zealand holds eighth place with the lowest absolute debt among the top 10 countries at $43,988 per capita. Their average income of $36,811 ranks as the second-lowest in the group, resulting in a 119.50% debt-to-income ratio and debt exceeding income by $7,177 per person. New Zealand’s position highlights a pattern among Commonwealth nations, with Australia (2nd) and Canada (3rd) also ranking among the top debt-dependent countries.
Netherlands secures ninth place with $53,431 in per capita debt balanced against average earnings of $45,433 annually. This combination generates a 117.60% loan-to-income ratio and creates a debt excess of $7,998 per person. The Netherlands maintains relatively moderate debt rates compared to other Western European nations in the top 10.
The United States completes the top 10. In contrast with Canada, US households incur $58,215 in per capita debt with average salaries of $51,881, while their northern neighbors owe $54,573 per capita but earn significantly less at $34,610 annually. This $17,271 salary advantage allows Americans to maintain a more sustainable debt position at 112.21%.
“The data reveals a concerning trend where developed nations are increasingly dependent on credit to maintain living standards,” says the loan company spokesperson. “When household debt exceeds annual income by such significant margins, as we see with ratios above 100% in all top 10 countries, it raises serious questions about long-term financial sustainability. Countries like Norway and Australia, where debt approaches 170% of annual income, represent particularly concerning examples of households living well beyond their immediate means.”