What Is National Debt

Sun, 12 Apr 2026 17:47:50 +0000

**What Is National Debt — and Why It Matters in 2025** Ever wondered why government balance sheets turn heads in news feeds and economic debates? The discussion around what is national debt is more prominent than ever, shaping conversations about economic stability, public spending, and future financial decisions—both personally and nationally. As U.S. debt levels approach recent historical highs, understanding this core concept has become essential for informed civic and financial engagement. When people ask, “What is national debt?”, they’re often seeking clarity on how government borrowing works, its impact on inflation, interest rates, and household budgets. At its core, national debt represents the total amount of money the federal government owes to creditors—individuals, banks, foreign governments, and institutional investors—after accounting for past surpluses. This total grows when the government spends more than it collects in tax revenue, requiring borrowed funds to cover the gap. **Why What Is National Debt Is Gaining Attention in the US**