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It\u2019s no secret that America has a debt problem. But did you know you can now help pay it down the same way you\u2019d split a meal with a friend?<\/p>\n
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That\u2019s right. Under the \u201cGifts to Reduce the Public Debt\u201d section on Pay.gov, the U.S. Treasury now accepts payments via Venmo and PayPal \u2014 in addition to debit cards, credit cards and bank transfers.<\/p>\n
The update was spotted by NPR\u2019s Jack Corbett, who shared a screenshot of the new payment options via X on July 23. The post quickly went viral, racking up millions of views from users, many of whom were not impressed.<\/p>\n
\u201cYou can also take your hard-earned money and put it in a fire pit and burn it,\u201d reads one comment.<\/p>\n
It\u2019s easy to see why people are skeptical. The U.S. national debt has ballooned to $36.7 trillion \u2014 and it\u2019s growing at an alarming pace. Since 1996, Americans have personally contributed approximately $65 million toward the national debt, according to Treasury data. Hardly a dent.<\/p>\n
Others pointed out that they already \u201chelp\u201d the Treasury by paying taxes.<\/p>\n
But the reality is, while the government does collect trillions in taxes, it consistently spends more than it takes in. In fiscal year 2024, the federal government brought in $4.92 trillion in revenue, but spent $6.75 trillion \u2014 resulting in a deficit of $1.83 trillion.<\/p>\n
So, no, a Venmo payment won\u2019t fix America\u2019s debt crisis. And according to some experts, the consequences of a high national debt could be severe.<\/p>\n
Ray Dalio, founder of the world\u2019s largest hedge fund, Bridgewater Associates, warned earlier this year that the U.S. is headed for what he calls \u201ca debt death spiral.\u201d<\/p>\n
\u201cA debt death spiral is that part of the cycle when the debtor needs to borrow money in order to pay debt service and it accelerates,\u201d Dalio said. \u201cAnd then everybody sees that and they don’t want to hold the debt.\u201d<\/p>\n
Highlighting the dire situation, he noted that the U.S. federal government now spends almost $1 trillion a year just on interest payments.<\/p>\n
When debt loads become unsustainable, lenders start fearing defaults. But according to Dalio, the U.S. is unlikely to default in the traditional sense. The bigger threat? Depreciation of our currency.<\/p>\n
\u201cThere won\u2019t be a default \u2014 the central bank will come in, and we\u2019ll print the money and buy it,\u201d he says. \u201cAnd that’s where there’s the depreciation of money.\u201d<\/p>\n
To protect your wealth, Dalio emphasized the role of one time-tested asset.<\/p>\n
\u201cPeople don’t have, typically, an adequate amount of gold in their portfolio,\u201d he noted. \u201cWhen bad times come, gold is a very effective diversifier.\u201d<\/p>\n
Gold\u2019s role here is straightforward: unlike fiat currencies, the yellow metal can\u2019t be printed at will by central banks.<\/p>\n
It\u2019s also widely regarded as the ultimate safe haven. Gold is not tied to any one country, currency or economy, and in times of economic turmoil or geopolitical uncertainty, investors often flock to it \u2014 driving prices higher.<\/p>\n
Over the past 12 months, the price of the precious metal has surged by more than 35%.<\/p>\n
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.<\/p>\n When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals<\/a> for free.<\/p>\n Read more: BlackRock CEO Larry Fink has an important message for the next wave of American retirees \u2014 here’s how he says you can best weather the US retirement crisis<\/a><\/p>\n Gold isn\u2019t the only asset investors rely on to preserve their purchasing power. Real estate has also proven to be a powerful hedge.<\/p>\n When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.<\/p>\n Over the past five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has jumped by more than 50%, reflecting strong demand and limited housing supply.<\/p>\n Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn\u2019t exactly hands-off work \u2014 managing tenants, maintenance and repairs can quickly eat into your time (and returns).<\/p>\n The good news? You don\u2019t need to buy a property outright \u2014 or deal with leaky faucets \u2014 to invest in real estate today.<\/p>\n One option is Homeshares<\/a>, which gives accredited investors access to the $35 trillion U.S. home equity market \u2014 a space that\u2019s historically been the exclusive playground of institutional investors.<\/p>\n With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund \u2014 without the headaches of buying, owning or managing property.<\/p>\n With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties<\/a> across regional markets.<\/p>\n Another option is First National Realty Partners (FNRP)<\/a>, which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.<\/p>\n With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart<\/a>, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.<\/p>\n Simply answer a few questions \u2014 including how much you would like to invest \u2014 to start browsing their full list of available properties<\/a>.<\/p>\n It\u2019s easy to see why great works of art tend to appreciate over time. Supply is limited and many famous pieces have already been snatched up by museums and collectors. Art also has a low correlation with stocks and bonds, which helps with diversification.<\/p>\n In 2022, a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie\u2019s New York, making it the most valuable collection in auction history.<\/p>\n Investing in art was traditionally a privilege reserved for the ultra-wealthy.<\/p>\n Now, that\u2019s changed with Masterworks \u2014 a platform for investing in shares of blue-chip artwork<\/a> by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy. It\u2019s easy to use, and with 23 successful exits to date, every one of them has been profitable thus far.<\/p>\n Simply browse their impressive portfolio of paintings<\/a> and choose how many shares you\u2019d like to buy. Masterworks will handle all the details, making high-end art investments both accessible and effortless.<\/p>\n Masterworks has distributed roughly $61 million back to investors. New offerings have sold out in minutes, but you can skip their waitlist here<\/a>. See important Regulation A disclosures at Masterworks.com\/cd<\/p>\n