Ray Dalio says the US faces a debt crisis ‘in three years, give or take two.’ 5 things Americans can do now

Billionaire Ray Dalio warned the U.S. faces a major debt crisis in the next three to five years. He likened the U.S. to someone on the verge of a heart attack due to ballooning debt and mounting bond yields. The Congressional Budget Office projects a 6% budget deficit in 2026, equivalent to $1.9 trillion in debt service payments.

Troubled by the debt trajectory, Dalio proposed slashing spending, lowering interest rates, and boosting tax revenue to bring the deficit to 3% of GDP. Financial planners suggest building an emergency fund, paying down debt, reviewing finances, watching job security, and planning for retirees. Regardless of whether a crisis occurs, these steps can help Americans financially prepare.