What should you do if the U.S. defaults?
An agreement needs to be reached on the debt ceiling by Tuesday, August 2, the deadline for when the Treasury starts to run out of money to pay all the government’s bills. Agreement options include: (a) raise the current debt ceiling of $14.3 trillion; (b) postpone the decision; or (c) let U.S. default on its loans.
Historically, since Congress enacted debt ceiling laws during World War I, the US has agreed to raise the debt ceiling 74 times—10 of which happened in the last 10 years! But what happens if we default? What does that mean for interest rates on credit cards and student loans, the price of gas and everyday items, and your investment portfolio?