List three ways in which individual debt differs from government debt.

Government debt is larger.

Government usually borrows significantly more debt than an individual can because it is to be used to run many more things than an individual would be able to.

Government debt is less risky.

The government is able to fall back on the assets of the entire country as well as print money to be able to pay off debt. There are therefore less chances of the government defaulting so its debt is less risky.

Government debt can keep borrowing even though it is in debt.

There is a certain level of debt that individuals are allowed to have and then credit holders would refuse to give them more. This is not the case for the government which can keep on borrowing even though it already owes a significant amount of debt.

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