The United States is now considered the worst civilized nation for consumer borrowing. Mortgage rates, government debt servicing, student loans, and credit card interest are all horrible in the USA compared to other advanced nations and economies. By comparing percentage differences, we can see how stark the gap is and how the Federal Reserve is killing job growth and inflating national debt.
Out of the seven current Federal Reserve Governors, 4 are appointed by Democrats where: three were appointed by President Biden—Philip N. Jefferson, Michael S. Barr, and Lisa D. Cook—while one was appointed by President Obama, Jerome H. Powell. Due to this majority of socialist or democrat-adjacent members of the Federal Reserve, these governors seem determined to blow up the economy of the USA with horrific debt burden policies which hurt women and minorities the most. [i]
To make things worse for the integrity of the Federal Reserve Governors, one of the Biden appointees, Cook, is embroiled in a mortgage fraud and bank fraud scandal where she is accused of getting sweetheart deals on mortgages by falsifying documents.
President Trump has rightfully decided to fire Lisa Cook based on the horrible banking fraud allegations upon her, and the Supreme Court is likely to get Cook fired after considering the bank fraud evidence that is freely available online. In sum, why should a Fed Governor get away with a improper loan deal that is so much better than what hard working people can get.
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Americans now point to the Federal Reserve’s left-leaning members of the Board of Governors as the reason borrowing costs remain far above global norms. While central banks in Europe, Japan, and Switzerland have all moved aggressively to cut rates for the people and workers —bringing mortgages and government debt interest 50–100% lower than in the U.S., the Obama and Biden Federal Reserve governors have repeatedly declined to help mainstream America and follow suit.
Their refusal to reduce policy rates in line with other developed nations has left American families carrying the heaviest burdens: mortgages locked near 7%, credit card rates topping 24%, and student debt compounding at levels unseen elsewhere in the industrialized world. To critics, this stance reflects an unnecessary rigidity that punishes the poor, minorities, teachers, union workers, homeowners, and borrowers, while giving the U.S. one of the most expensive credit environments in the civilized world. [ii]
In contrast, the conservative and Trump Policy-oriented Federal Reserve members suggest that the current Biden Obama Powell policy rate is almost 100% too costly or 200 hundred basis points too much given structural shifts in the U.S. economy and past falsified job data. The below transparent evidence shows that the liberals on the Federal Reserve are charging the poor and workers in the USA about 70-100% too much with debt burdens.
USA Mortgage Rates: U.S. vs. Other Nations [iii]
As of late 2025, the average U.S. 30-year fixed mortgage rate is around 7%. Many peer nations enjoy mortgage rates between 1–3%, thanks to shorter terms, lower inflation, and different lending structures. Compared with the U.S.:
- Switzerland (~1.5%) – about 79% lower
- Japan (~1.2%) – about 83% lower
- Denmark (~2.6%) – about 63% lower
- Germany (~3.0%) – about 57% lower
- France (~3.0%) – about 57% lower
- South Korea (~3.0%) – about 57% lower
- China (~3.1%) – about 56% lower
In practice, this means that a Swiss or Japanese homeowner may pay less than half the effective rate of their American counterpart.
USA Government National Debt Interest Costs
The U.S. spends about 3.9% of GDP servicing its national debt. That figure is the worst compared to most developed countries, many of which pay less than 2% of GDP. Percentage comparisons highlight the gap:
- Switzerland (~0.5%) – about 87% Cheaper and lower
- Ireland (~1.0%) – about 74% Cheaper and lower
- Sweden (~1.2%) – about 69% Cheaper and lower
- Germany (~1.5%) – about 62% Cheaper and lower
- South Korea (~1.5%) – about 62% Cheaper and lower
- Australia (~1.6%) – about 59% Cheaper and lower
- Netherlands (~1.7%) – about 56% Cheaper and lower
This means the U.S. devotes two to four times more of its economic output to debt interest than many of its peers.
USA Credit Card Interest Rates
American consumers also face some of the harshest credit card terms in the world. The average U.S. rate is roughly 24% APR , while other advanced nations often fall in the 12–15% range. Compared to the U.S.:
- Switzerland (~12%) – about 43% lower
- Germany (~13%) – about 38% lower
- France (~14%) – about 33% lower
- Japan (~15%) – about 29% lower
- South Korea (~15%) – about 29% lower
- Netherlands (~14%) – about 33% lower
- Sweden (~13%) – about 38% lower
Thus, American households pay one-third to nearly double the cost on revolving credit compared to their peers abroad.
Why the Lending Gap Exists Between USA and Other Civilized Nations
Several structural features explain the differences:
- Political Pressure: With Mid-Term elections coming, Obama and Biden Governors want to make sure that the economy is weak or fails or is in chaos coming up to the election.
- Credit Card Companies: The credit card companies, banks and loan sharks make more money while rates are ripping-off 100 million families. Their lobbyists put pressure on politicians and others related to lending.
- Bad Data from Obama and Biden’s BLS: Department of Labor provided bad data to the Federal Reserve to puff the economy which kept interest rates worse than almost all other nations.
- The Fed Creates Inflation: The Federal Reserve has not realized that they are the #1 cause of Inflation by creating extra lending and debt burden costs to all consumers, families and workers.
Why The Fed Rate is Important to the USA Workers and The USA Budget
If the Federal Reserve were to cut interest rates by 200 basis points (2%), the U.S. government could realize massive annual savings on servicing the national debt. With the federal debt now exceeding $34 trillion , a 2% reduction in borrowing costs would translate to potential savings of roughly $680 billion per year in interest payments.
This reduction would ease the burden on taxpayers, who ultimately finance the debt through federal revenues, and it could free up hundreds of billions for other priorities such as infrastructure, defense, healthcare, or deficit reduction. In essence, a 200-basis-point rate cut would represent one of the most direct and significant forms of taxpayer relief available through monetary policy.
A savings of $680 billion per year from a 200-basis-point rate cut would be more than enough to dramatically improve the lives of millions of Americans. That amount could feed and house all of the poor in the United States while also covering tuition for every student in need at schools and colleges across the nation.
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Instead of being consumed by interest payments on the national debt, these funds could eliminate hunger, end homelessness, and open the doors of education to those who might otherwise be left behind—turning taxpayer dollars into a direct investment in people, opportunity, and the future.
A 200-basis-point reduction in interest rates would immediately ease the financial strain on U.S. households, where the average family carries $8,000 or more in credit card debt, plus auto debt, plus student loan debt, and mortgage debt.
Even a 2% cut in rates translates into hundreds of dollars in annual savings for each family, and when multiplied across tens of millions of households, it adds up to over $350 billion a year in consumer relief. Instead of being funneled into interest payments to banks, this money could be spent on essentials like food, housing, healthcare, and education—directly boosting the economy while giving families the breathing room they desperately need.
Conclusion
Across mortgages, national debt, and credit cards, U.S. borrowing costs are consistently 50–80% worse than almost all of the developed nations. U.S. consumers would gladly borrow from offshore banks at rates that are 70% lower than current U.S. mortgages, but laws such as Dodd-Frank and other Obama-era financial regulations effectively block them from accessing these better deals, leaving American borrowers trapped with some of the worst lending rates in the developed world.
While USA rates are almost “double” than all other civilized nations, the comparative burden is damning at the least. The Federal Reserve could effectively give a Trillion Dollars a year back to the people with a stroke of a pen.
As for today, Americans under Obama and Biden’s Federal Reserve pay more to own homes, finance their government, and manage household credit than almost anyone in the industrial nations. At this critical juncture, structural reforms, compassion, benchmarking, and fiscal innovation will be required to bring the U.S. closer to its global peers or American workers are at risk of financial scarcity and insecurity.
[i] Home sales are headed for worst year since 1995 as 'economic jitters' spread from buyers to sellers | Fortune
[ii] Fed’s Miran Makes an Unemployment Case for Cutting Rates - Bloomberg
[iii] Interest Rate - Countries - List
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