Pretty much every government in the world is indebted. Many various equations make it possible to determine if a country is financially trustworthy. One of them is the debt-to-GDP ratio. GDP is a value of services and goods that the state produces. This ratio measures a specific country government debt amount compared to GDP (gross domestic product).
High debt-to-GDP ratio means that the risk of default is high, and the country is less likely to pay the money back. According to the World Bank, when the debt-to-GDP ratio is higher than 77% for a longer period, the economic growth of a country is significantly slowed. Currently, the US debt-to-GDP ratio is 106%, which is the 10th worst score in the world.
The US government owes its citizens insanely high amount of money. But, it feels like America as a nation is not afraid of debts. Currently, almost 40% of Americans owes money. It means that over 80 million US citizens in the past year got in debt. Why do they decide to take loans so often?
It happens for various reasons. Except for emergency and unexpected situations, that are mostly connected to health issues, Americans borrow money to buy or repair vehicles, pay off bills, and tuition fees. Some of them take out personal loans in order to consolidate their debt.
There are a million possible reasons that one might want to borrow some money. And after all, it’s nothing terrible. However, not everyone can get a loan. Applications of people with bad credit scores are often rejected. But even with bad credit, it’s possible to take a loan. If you want to learn more about it, check https://www.realisticloans.com/personal-loans/loans-for-bad-credit/. And, if you want to find out more interesting facts about loans, take a look at the infographic, provided by Realistic Loans: