Is the US Headed for a Debt Crisis?

How big is the US national debt?

The United States government owes more than $40 trillion. Back in 1982, it owed about 1 trillion. And in 2026, borrowing more got expensive.

Picture a family that earns $100,000 a year. Now give it $800,000 of credit card debt. That is the government's math.

It collects about $5 trillion in taxes a year.

Why the rate on Treasury bonds is climbing

To borrow, the government sells IOUs called Treasury bonds. In June of 2026, lenders took about 4.9% for 30 years.

But the government needed trillions more. Those lenders had already lent. So the rate had to climb to bring in new ones.

By the end of September, it was about 5.6%. That is the highest since 2002.

Interest on the national debt: 22 cents of every tax dollar

Higher rates mean a bigger interest bill. For the government's year that ended September thirtieth, the bill is about $1.1 trillion.

That is about 22 cents of every tax dollar.

Is a US debt crisis coming?

So, is a debt crisis coming? Not overnight. But the bill grows every year the debt does.

Our take

Here is our take. If you borrow, do not count on rates falling soon. If you save, safe bonds now pay more than they have in years.

$40 trillion is hard to picture. 22 cents of every tax dollar is not.