The great depression began in 1929 and had some influence on debt which was one of the Great Depression causes in the United States. American consumers and businesses in the 1920s greatly relied on cheap credit previously to purchase consumer goods like furniture and automobiles, and later for capital investment to increase production. This catalyzed strong short-term growth but created consumer and commercial debts. Businesses and individuals that were much in debt after price deflation occurred or demand for their products decreased often risked default. Besides, War-related debts amounted to around $12 Billion which was equivalent to 15% of the U.S national income and higher than the total U.S private long term foreign assets. The war-related debts critically disrupted the international financial system and also influenced the great depression.
