Who owns the US national debt
The U.S. national debt is primarily held by domestic and foreign investors as "debt held by the public", and by federal government agencies and trusts as "intragovernmental debt". As of mid-2025, the gross national debt was over $38 trillion, with approximately 80% held by the public and 20% by the government itself.
Breakdown of Ownership
Breakdown of Ownership
The national debt is owed to a diverse range of holders, both in the U.S. and internationally.
Domestic Holders (Public Debt Portion)
Domestic entities hold over two-thirds of the debt held by the public.
The Federal Reserve System: The U.S. central bank is the largest single holder of U.S.
debt, owning about $4.6 trillion as of March 2025.
Mutual Funds: These funds hold a significant portion, valued at around $4.4 trillion.
State and Local Governments: Various state and local government entities and their pension funds hold billions in Treasury securities, totaling around $1.7 trillion.
Other Domestic Investors: This category, totaling around $5.75 trillion, includes individuals (via U.S. savings bonds), insurance companies, depository institutions, and other private corporations.
Foreign Holders (Public Debt Portion)
Foreign investors, including private individuals, businesses, and governments, own about 25-32% of the publicly held debt.
Japan: Investors in Japan are the largest foreign holders of U.S. debt, with over $1.1 trillion in holdings as of May 2025.
Mainland China: China is the second-largest foreign holder, with approximately $756.3 billion.
United Kingdom: The U.K. holds the third-largest share among foreign countries, at around $809.4 billion.
Intragovernmental Holdings
This portion of the debt is money the government owes to itself, primarily held in various federal trust funds.
Social Security Trust Funds: The Social Security Old-Age and Survivors Insurance Trust Fund is the largest holder, with about $2.4 trillion as of August 2025.
Federal Retirement Funds: Other significant holders include federal employee and military retirement funds.
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Who owns the US credit card debt?
U.S. credit card debt, which reached a record $1.346 trillion at the end of 2024 and remains at similar historic highs in late 2025, is primarily owned by a small group of large commercial banks.
While millions of Americans "owe" the debt, the legal owners of these receivables—the entities that have the right to collect payments and interest—fall into three main categories.
1. Major Commercial Banks (Primary Owners)
A handful of "big banks" own the vast majority of credit card debt through their loan portfolios. As of mid-2025, the following institutions held the largest volumes of outstanding credit card loans:
Capital One: Following its acquisition of Discover, it became the top holder with over $252 billion in credit card loans.
JPMorgan Chase: Holds approximately $203.6 billion.
Citibank: Owns about $177.7 billion.
American Express: Manages a portfolio of $107.6 billion.
Bank of America: Holds roughly $103.6 billion.
Collectively, the top 10 issuers control more than 82.5% of all outstanding credit card balances.
2. Retail and Specialized Issuers
A significant portion of debt is also owned by banks that specialize in "private label" or store-branded credit cards.
Synchrony Bank: The dominant leader in store-branded cards, holding nearly $97 billion in debt for partners like Amazon, Lowe's, and Verizon.
Wells Fargo and U.S. Bank: Also maintain substantial portfolios, holding $56.5 billion and $30.6 billion, respectively
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3. Debt Buyers and Collectors
When consumers stop making payments and a debt is "charged off" (usually after 180 days of delinquency), banks often sell the ownership of that debt to third-party companies for a fraction of its value.
Encore Capital Group and Portfolio Recovery Associates: These are the two largest "debt buyers" in the U.S.
These entities purchase the rights to billions of dollars in defaulted consumer receivables and attempt to collect the full amount from the original borrower.
Important Distinction: Networks vs. Issuers
It is a common misconception that Visa and Mastercard own credit card debt. They are networks that process transactions; they do not issue cards or lend money.
Credit card issuers service your account and card, while credit card networks process and authorize credit card transactions.
8 Biggest U.S. Credit Card Companies This Year - US News Money
Therefore, Visa and Mastercard do not "own" the debt; the bank that issued the card (e.g., Chase or Citi) does. Only American Express and Discover act as both the network and the bank issuer, meaning they own the debt on the cards they process.
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https://www.globenewswire.com/news-release/2025/03/06/3038338/0/en/JP-Morgan-Tops-Nilson-Report-Ranking-of-US-Credit-Card-Issuers.html
JP Morgan Tops Nilson Report Ranking of US Credit Card Issuers
The 10 largest issuers generated $5.064 trillion in card spending in 2024
March 06, 2025 10:10 ET | Source: The Nilson Report
SANTA BARBARA, Calif., March 06, 2025 (GLOBE NEWSWIRE) -- Purchase volume—spending for goods and services—for Visa, Mastercard, American Express and Discover credit cards issued in the US reached $6.136 trillion in 2024, up 5.3% over 2023. For the sixth year in a row, JP Morgan Chase was the top issuer, based on more than $1.344 trillion in purchase volume.
American Express ranked second largest with $1.168 trillion in purchase volume, and Citi, which ranked third, had $616.10 billion. Capital One and Bank of America rounded out the top five.
“There are more than 4,500 financial institutions in the US. The 5 largest accounted for 69.1% of all spending on credit cards last year,” said David Robertson, Publisher of the Nilson Report. “The 10 largest issuers accounted for more than 82.5%.”
Outstanding credit card receivables—unpaid balances—on American Express, Discover, Mastercard and Visa credit cards reached $1.346 trillion at year-end 2024, up 7.9%.
“Outstanding debt on cards is growing faster than spending, indicating that some consumers are falling behind on their obligations,” said Robertson.
The number of Visa, Mastercard, American Express and Discover credit cards in circulation was 942 million at year-end 2024. The number of in-store and online locations in the US where those cards could be used to make purchases of goods and services reached 34 million.
ABOUT THE NILSON REPORT
For more than 54 years, the Nilson Report has been the most respected provider of statistics and news about the global payment card industry. Available worldwide by subscription only, the Nilson Report does not accept advertising of any kind, nor can any company pay to be featured on its website or in its publications.
For more information or to request an interview with David Robertson, contact: Lori Fulmer, lfulmer@nilsonreport.com. Visit www.nilsonreport.com to begin a free trial subscription.
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