You’ve probably heard about the national debt ceiling and its recent extension, but you might wonder what it has to do with your everyday life as a family. While it may seem like a distant matter, the national debt ceiling extension can have a significant impact on your family's financial well-being and future planning.
So what exactly is the national debt ceiling extension?
The national debt ceiling is a legal limit set on the amount of money the government can borrow to finance its operations and meet its financial obligations domestically and around the globe. When the government reaches this limit, it cannot borrow more money unless Congress raises or extends the country’s debt ceiling. If the ceiling isn’t raised and the United States can’t pay back its debts, the country’s global creditworthiness is affected as well as financial security abroad and at home.
The National Debt is currently at the tune of $32 trillion with no current substantive or reasonable plan of paying it back. Instead, Congress raised the national debt ceiling on June 3, 2023, which means the United States will not default on its loans. This is good news in one sense but bad news in another. It’s certainly important to understand how the extension of the debt ceiling can still affect the economy and your family.
Here’s how the national debt ceiling extension can affect the economy, and your family, and what you can do to mitigate the impacts.
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