DALLAS, October 15, 2013 /PRNewswire/ --
Following the publication of a helpful debt ceiling crisis infographic produced by CNN News, PersonalLoansForBadCredit.org has decided to produce an explanatory information sheet. It focuses on how the debt ceiling crisis may affect consumers if it is not resolved shortly.
Ben Milo, spokesperson for PersonalLoansForBadCredit.org, made the announcement:
"The U.S government has been spending way beyond its means and has reached its ceiling of debt, as set by Congress, back in May 2013. To put it bluntly, the government needs to pay its bills and cannot restructure this debt anymore. We wanted to produce an information sheet that explains what may happen for the average American consumer if Congress doesn't manage to appropriate new funding for the next fiscal year. If the Treasury Department cannot borrow new money how will American pay its bills and what does this mean for Main Street? We invite consumers to read our information sheet to see what may happen next."
Some highlights from the information sheet on how the continuation of the debt ceiling crisis can affect consumers include the following:
- Savings: If the stock market were to drop substantially, savings could be decimated. There is a worrying precedent for this, as in the summer of 2011, before the Federal Government defaulted on any debt payments, Congress raised the nation's debt limit which resulted in the United States being downgraded by Standard & Poor's from a AAA credit rating. The Stock market was very negatively affected and the S&P index fell by 17% in a matter of weeks.
- Job security: If the debt ceiling crisis is not resolved soon, the United States could enter another recession, which could place millions of jobs into jeopardy. If that Treasury cannot bankroll all of the money needed to cover its bills in October and a revised debt ceiling is not met, this could spell trouble for the workforce as Congress would need to cut spending, thereby freezing potential growth and culling jobs.
- Social Security benefits: Some of the largest payments that the Federal Government makes on a monthly basis are Social Security benefits. If the debt ceiling is not raised, these could be withheld.