Debt ceiling: 3 ways your finances could be affected
CBSN
The so-called debt ceiling — the amount the U.S. government can borrow to honor its spending obligations — may seem like an abstract political issue for congressional leaders to deal with, but millions of Americans could suffer very real-world financial hits if the conflict drags on.
On Thursday, the federal government reached the debt limit of $31.4 trillion, prompting U.S. Treasury Secretary Janet Yellen to invoke "extraordinary measures" that will allow the country to avoid an unprecedented default for at least the next few months.
Because U.S. debt is considered the bedrock of the global financial system — in part due to its stability — a default could undermine economies across the world. At home, many Americans would likely see a decline in their wealth as the stock market recoiled, bringing down the value of their 401(k) plans. Social Security beneficiaries and others dependent on government programs might not get their monthly checks.
