What Is Donald Trump's Personal Debt?

GOP presidential nominee Donald Trump's riches have been debated for decades. Traditionally, the billionaire's estimates of his own net worth have been higher than those made by outside sources looking in...

Donald Trump personal debt — GOP Presidential Nominee Donald Trump

For example, since officially announcing his POTUS bid on June 16, 2015, Trump has repeatedly asserted that he's worth more than $10 billion. But earlier this year, in May, Forbes argued Trump is worth less than half of what he claims -- $4.5 billion. And Bloomberg's latest "Billionaire Index," which was updated on July 19, put Trump's net worth at only $3 billion.

These are exactly the kinds of media inconsistencies that also make it difficult to report on Trump's personal debt.

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Money Morning's research team did some fishing to find the best answer to the question, "What is Donald Trump's personal debt?"

Our findings suggest that while Trump may indeed be richer than most Americans, he's also deeper in debt.

Have a look at what the self-proclaimed "King of Debt" owes...

On Donald Trump Personal Debt...

Trump's personal debt load has increased by almost 50% this past year.

Since his presidential bid announcement, the reality TV star went from being $350 million in the hole to $630 million, reported Bloomberg on July 19.

The Difference Between Trump's Personal and Corporate Debt

Trump's personal debt: This is the debt Trump has accumulated as an individual. A good example would be the $100 million mortgage loan he borrowed in 2012 against Trump Tower. Much like one pays back what's owed on a credit card or a new car, he makes personal payments toward that loan until it's paid off.

Trump's corporate debt: This is debt Trump's "brand" has incurred. As the owner of the Trump brand, he can accumulate debt on the corporation's behalf. Trump is not personally liable for his companies' failures. Therefore, Trump's four much-talked-about corporate bankruptcies don't affect his personal credit and have no impact on his personal debt unless he takes out personal loans to prop up what his businesses owe.

Much of this uptick was due to an additional $170 million line of credit he borrowed from Deutsche Bank AG (NYSE: DB) for a hotel project in Washington.

Meanwhile, Trump has loaned about $50 million of his personal wealth to his campaign over the past year but doesn't plan on recouping the amount, he said in a June 23 statement. However, he hasn't filed with the Federal Election Commission (FEC) the paperwork required to officially forgive that loan either, reported Slate on June 30.

Also significant to Trump's debt load is the value of Trump Tower in New York: It increased to $600 million from $490 million over the past twelve months. That's because Gucci Group NV (OTCMKTS: GUCG), its largest tenant, increased the rent it pays to occupy the bulk of the building's retail space.

This is positive news for Trump's personal debt outlook, as he borrowed $100 million against the tower in 2012 from Ladder Capital Corp. (NYSE: LADR), a commercial mortgage lender. Before this appraisal, Trump had personally guaranteed to fork over just $8 million on that hefty loan, and he still only has to pay interest on the debt until 2022 - the year the principal comes due.

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Find out more on Donald Trump's personal debt as we find out more by following us on Twitter @moneymorning and Facebook.

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