Part 9/12:
It's essential to treat all debt cautiously and avoid overextending yourself as market conditions change.
The Debt Bubbles and Economic Implications
The U.S. and global economies are experiencing record-high levels of debt across households, corporations, and the government:
National debt surpasses $32 trillion, with interest rates increasing rapidly since 2020.
Corporate debt peaked during the low interest rate environment of 2020–2021, heavily used for stock buybacks and expansion.
Household debt is at an all-time high, with consumers heavily reliant on credit, especially during inflationary periods.
The looming risk
As interest rates rise, the cost of servicing debt swells — especially for variable-rate loans. For example: