The Debt Bomb Is Ticking Louder Than Ever

The United States is facing a looming economic crisis, with the national debt surpassing $38.5 trillion as of early 2026. This staggering figure translates to over $115,000 per citizen or nearly $290,000 per household. The debt has increased by $2.2 trillion in 2025 alone, with a daily addition of approximately $6 billion. At this rate, the debt is projected to exceed $39 trillion by spring 2026.

Understanding the Debt Crisis

The sheer magnitude of the debt is not the only concern; the interest payments on this debt are also a significant burden. The annual interest payment on the national debt has surpassed $1 trillion, exceeding the amount spent on national defense. This has resulted in a substantial portion of taxpayer dollars being allocated towards servicing the debt, rather than being invested in essential public services.

Consequences of the Debt Crisis

The effects of the debt crisis are far-reaching, impacting various aspects of the economy and the daily lives of citizens. Some of the consequences include skyrocketing borrowing costs for businesses and families, crowding out private investment, fueling inflation, and increasing rates on homes, cars, and credit cards. These factors contribute to a decrease in the overall standard of living and make it challenging for individuals to make ends meet.

Household Debt and the Housing Market

In addition to the national debt, household debt has also reached record levels, with total household debt exceeding $18.59 trillion in the third quarter of 2025. This includes mortgages, credit cards, and auto loans, with mortgages being the primary contributor. The housing market is also showing signs of distress, with mortgage delinquencies rising to around 4% in the third quarter of 2025. Furthermore, 30-year mortgage rates are expected to be around 5.8% in 2026, making it even more challenging for individuals to afford homes.

Auto Loans and Credit Card Debt

Auto debt is another area of concern, with subprime delinquencies reaching a record 6.65% in late 2025. This has resulted in lenders becoming more cautious, with a significant increase in denied loan applications. Credit card debt is also at an all-time high, with balances exceeding $1 trillion and APRs over 21%. Delinquencies have stabilized somewhat, but the underlying issues of unaffordable living expenses and high interest rates persist.

Commercial Real Estate and the Risk of Collapse

A significant amount of commercial real estate (CRE) loans, totaling over $930 billion, are set to mature in 2026. This, combined with the existing economic uncertainty, poses a substantial risk to the financial system. The potential for defaults, distressed sales, and bank instability is high, which could have far-reaching consequences for the economy.

Preparing for the Worst

Given the current economic landscape, it is essential for individuals to be prepared for the possibility of a full-blown economic collapse. This includes understanding the signs of an impending collapse, learning from historical examples, and taking practical steps to protect oneself and one’s family. By being informed and proactive, individuals can mitigate the risks associated with the debt crisis and ensure a more secure financial future.

For a more in-depth analysis and guidance on preparing for an economic collapse, please refer to our comprehensive guide Here.