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Are There Any Countries in the World Not in Debt?

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Everybody knows that since the financial crash of 2008, the global economy has been fluctuating ever since.

Most of the countries in the western world have record levels of debt. The USA alone has a national debt in the hundreds of trillions.

Many people often wonder what countries have the lowest debts or even no debt at all! Well, there are a few with almost no debt at all.

1. Hong Kong

The Special Administrative Region of Hong Kong is the country with the lowest debt level in the world. Some sources claim that Hong Kong is completely debt-free, while other sources claim that it has a debt of around 0.1%-0.2%. No other country even comes close to this.

The reason for this minuscule debt is because Hong Kong is a lucrative financial hub for the whole world. Hong Kong has a heavily regulated banking sector, large reserves of foreign exchange currency, and efficient education and taxation systems.

For such a small administrative region, it brings in such a huge amount of money from all the big banks located within it, which ensures that Hong Kong has plenty of surplus cash to spend on public projects.

2. Brunei

As mentioned earlier, Brunei’s debt is around 3.1%. Although this isn’t as low as Hong Kong, it is still a substantially small debt considering how much Brunei spends on its public welfare programs.

The country’s large gas and oil reserves mean that these products can be exported for high prices to wealthy nations in the West such as countries in the EU and the USA. 

The reason Brunei has debt at all is that it has universal healthcare for all citizens, paid for by the state, as well as subsidies on food and housing for the people.

It is quite impressive that the country’s debt is so low, considering the amount of money that goes into their state-sponsored welfare programs.

3. Estonia

Estonia’s debt levels come in at 9.5%, a much higher rate than Brunei and Hong Kong but still incredibly low for a European country.

The reason for this low level of debt is due to the free-market, liberal policies Estonia pursued following the collapse of the Soviet Union in 1991.

Its neighboring nations, Latvia and Lithuania, didn’t go down this path and instead went ahead with Cold War economic policies. 

Estonia pursues aggressive free trade, has a flat income tax rate, and a carefully balanced public spending plan. 

4. Saudi Arabia

Everybody knows Saudi Arabia is a nation full of oil that can be exported for high prices. Due to this, Saudi Arabia’s debt sits at around 12.4%, still low by Middle Eastern and Western standards.

The Saudi Empire debt can be highly volatile due to the fact their economy relies almost solely on oil exports. So, when oil prices fall, Saudi Arabia often has to borrow money to fill the void of lost cash.

5. Botswana

Many people think of small African nations and associate them with less than satisfactory living conditions. However, Botswana is not like this at all. Botswana’s debt is 13.9%, almost unheard of for an African nation.

Even during the peak of the global economic crash in 2008, Botswana ended up borrowing very little money and continued a trend of healthy economic growth.

Obviously, this amount of debt is still much higher than that of countries mentioned lower on this list but is still impressive nonetheless if you consider the context around this issue.

6. Russia

Russia had done surprisingly well for itself ever since the collapse of the Soviet Union. Russia’s debt to GDP ratio is incredibly healthy at 17% for a country of its size.

This is thanks to Russia having the world’s largest natural gas reserves which are incredibly lucrative exports due to the reliance of this natural gas in power plants all over Europe and beyond. 

7. Kuwait

Kuwait’s economy is very similar to Saudi Arabia. Despite this Kuwait’s debt is higher coming in at 18.6%. Kuwait is much smaller than Saudi Arabia and therefore has smaller oil reserves.

Kuwait suffers from the same problems as Saudi Arabia when it comes to volatile oil prices which then drives borrowing up. Kuwait does have a large sovereign wealth fund but doesn’t like to use it unless necessary.

Due to this, since 2016, Kuwait has increased its domestic debt to £8.9 billion and its foreign debt to £5.9 Billion. Despite this increase in debt, Kuwait is still financially stable and on track to remain a healthy Middle Eastern economy.

Five Ways to Relieve Medical Debt

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The average American will actively do everything they can to avoid a trip to the hospital or the emergency room. The funny thing is that they are not hesitant to receive medical care…just the bill afterward.

Most Americans are so desperate to steer clear of medical debt that many people who need to go to the hospital are calling for Ubers instead of ambulances, opting to pay approximately ten dollars for a ride as opposed to spending one thousand dollars minimum (in addition to their actual hospital visit).

Such practices are not new, and these methods for reducing medical debt are often necessary to keep most Americans financially afloat.

Hospital bills for even relatively minor injuries, such as cuts that are barely deep enough to require stitches, tend to cost thousands of dollars, even if the injured person has decent health insurance. 

Fortunately, there are a few different ways to find relief for medical debt.

Keep reading to discover these methods for yourself. 

Relieving Medical Debt: Five Useful Options 

If you are struggling with medical debt, the situation may feel dire, but it is not entirely hopeless. The debt can seem staggering, but it does not necessarily have to be. Here are five helpful methods for reducing the excess expenses that come with medical bills. 

Establish a Payment Plan 

One of the simplest ways to resolve a bill that cannot be paid in a single installment is to establish a payment plan. Most medical providers can work out a scheduled payment plan that breaks down the debt over several months until the total has been covered.

If you are uncertain if the medical provider would be willing to create a payment plan, there is no harm in asking. Be sure to inquire about billing fees or any additional charges associated with establishing a payment plan, as well. This will allow you to avoid being ambushed by extra costs. 

Establish an Income-Driven Hardship Plan 

You may qualify for an income-driven hardship plan if you have both a low income and a large amount of medical debt. Like payment plans, income-driven hardship plans break medical bills into smaller payments.

Unlike regular payment plans, an income-driven hardship plan can also potentially reduce the amount you owe. You may want to ask your medical provider about both types of plans. Please note that you may have to have or apply for Medicaid to qualify for an income-driven hardship plan. 

Use a Medical Credit Card 

Your medical provider may take medical credit cards if they are not willing to accept a payment plan. Some healthcare providers will carry applications for these cards in their offices. See more information here:

https://www.aarp.org/money/credit-loans-debt/info-2019/paying-medical-debt.html

A medical credit card is designed specifically to cover medical expenses, and in some instances, they are used to pay for specific procedures, such as dental care or eye surgeries. Most of these cards have an interest-free period ranging from six to twelve months. 

However, be wary of deferred interest. If you are unable to pay off your debt within the six to twelve month “interest-free” period, all of the interest that builds up during that time will accumulate and significantly inflate the amount you owe. Most credit cards, medical or otherwise, charge an average interest rate of 20%. 

Hire a Medical Bill Advocate 

If you are feeling especially overwhelmed by your medical debt, particularly if you were in the hospital for a lengthy amount of time and are facing a mountain of bills, you may want to hire a medical bill advocate.

These advocates negotiate on your behalf, and they are experts in reducing medical debt. Medical bill advocates know how to identify overcharges or errors. Do the math to determine whether hiring a medical bill advocate will ultimately save you money before hiring anyone.

Negotiate Costs Yourself 

Lastly, if your medical debt has already gone to a collection and you feel capable of doing so, you might be able to negotiate your medical debt on your own.

Debt collectors have probably bought your debt for a ridiculously cheap amount, and this knowledge will give you leverage when you discuss reducing your bills with them. 

You may also wish to do the work of a medical bill advocate and speak directly with your provider about lowering costs.

Examine your bills closely—even if the thought of looking at them again makes you anxious—to find any charges that appear to be too high or even incorrect. Consider combining this option with a payment plan to reduce your medical debt most effectively. 

Conclusion 

While medical debt is a nightmarish concept for most Americans, for some, it is an unpleasant reality. Excessive medical bills have the potential to rob many people of their finances before even taking overcharges or errors into account (despite insurance coverage, too, in many instances). 

Thankfully, many tactics for avoiding or relieving medical debt are readily available via the internet and word of mouth these days. These methods make it so that getting strapped with medical bills for both planned and unplanned visits to medical providers does not have to be so overwhelming and financially destructive.

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How to Pay for College and Not Drown in Debt

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The number of people who are paying for their college education long after school has finished is quite frankly astonishing. Approximately seventy percent of students leave college with some form of debt. This is not a problem unto itself. What is problematic is the fact that loan balances on average are climbing for students.

For example, on average, the class of 2014 left school with roughly $33,000 in debt per individual. Not only are fresh graduates finding themselves saddled with more debt per individual (about $5,000 more per student), but they also have to contend with paying interest rates that fall anywhere between 4.7% and 7.2%. All of this information can also be combined with the challenges of the current overall job market.

So, what can you do to pay for college without drowning in debt? Thankfully, there are a variety of viable options available to you.

How to Handle the Payments Themselves

One suggestion virtually everyone can keep in mind involves making the payments. Ensure you can pay at least the minimum every month, including interest and fees.

You should also make it a point to establish savings that can ensure you will be able to keep making student loan payments, if you lose a job after graduating, or are otherwise struggling financially.

If at all possible, pay more than the minimum. Remember that the faster you pay off your student loan debt, the less you are going to have to pay in the long run. This in turn can also benefit vital components of post-graduate life, such as your credit rating.

How to Keep Your Student Loan Debt Down

Focusing on federal student loans is another good way to keep your debt down. Beyond scholarships, wealthy parents, or any savings you had before starting to college, a federal student loan is a good way to get a meaningful amount of money (upwards of $27K over four years of your college education) with very few strings attached.

A federal student loan benefits the student with lower interest rates, fewer fees, and a more appealing degree of flexibility for paying back the loan. You can also try to measure how much you should take out against the starting salary for someone in your field.

Let us take a closer look at other ways to keep your student loan debt down, or how you can avoid it altogether (read more):

Specific Options for Keeping Costs Low

Here are some tangible ideas for you to consider.

Consider Community College

While a certain measure of planning is involved, particularly in terms of deciding when to transfer to a state or private school, community college is a great way to gain credits without spending an arm and a leg. In some cases, you can even shave off community college costs by taking “dual enrollment” or similar courses in high school.

Nonetheless, community college remains both affordable and viable. The more education you can pick up here, the less you’ll have to spend later on

Look at the Least-Expensive Colleges

Look for colleges with a no-loan financial aid policy in place. This may not be your first choice for a school, but it can still give you the result you are looking for with comparatively more manageable costs

Choosing a College Close to Home

There are more options out there for higher education than some people realize. For example, work colleges are a great way to obtain your necessary education, while also avoiding the need for massive student loans. You also have the option of picking a college that is closer to your home. It has been an adage for a long time that students who go to an out-of-state college have to pay more in virtually every regard than students who stay in-state.

This includes student loan debt. We would even suggest looking into any schools that meet your needs but were also attended or worked at by someone in your family. Surprising discounts and even freebies can be extended to students with such connections

Scholarships

Obviously, it would be silly to discuss how to cut down or avoid student loan debt, without mentioning the power of scholarships. Full-tuition scholarships consider merit, the desired area of study in question, the need of the student, and whether or not they have exceptional skills or other qualities.

Finding one is challenging, but there are more out there than you might think. Look into this option with the best schools that suit your goals. Scholarship search engines in general are invaluable at connecting you to ways to pay for more college now while avoiding student loan debt later on

Consider Unique Assistance Options

From military tuition assistance to the benefits of crowdfunding to pay for your college education, consider unique avenues to raise the money you need to pay out-of-pocket

Remember that it is ideal to pay for as much of college out-of-pocket as humanly possible.

Paying out of pocket means avoiding loans, repayment plans, additional fees, and interest rates. Paying out of pocket means that when it is done, it is done.

Coming Up with a Plan

At the end of the day, making a strong plan as early on in your plan to go to college is going to save you a lot of hassle in the future.

Once you know for certain that you want to attend college, there are a lot of different things you can do. Researching all of your higher education options, including community colleges in your area, can help you to narrow things down long before you actually have to make a decision.

A 529 Investment Plan can also help, as it is designed specifically to help people meet education investment goals.

Figuring out where you want to go to college (in-state or out-of-state), having a rough idea of your career path, and working out room, board, and meal costs ahead of your first day can all help you to keep your costs low.

These are only a few of the different ways you can keep yourself from drowning in student loan debt for 10+ years after you graduate.

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