How Possible U.S. Default Could Affect You - WSPA.com

How Possible U.S. Default Could Affect You

Posted: Updated:
Jack Jackson and Susan Appenzeller talk about the possible U.S. default. Jack Jackson and Susan Appenzeller talk about the possible U.S. default.
COLUMBIA, S.C. -

U.S. Senate leaders have reached a deal to raise the U.S. debt ceiling through February 7, but the deal still has to be approved by Congress and signed by President Obama.

If the debt ceiling is not raised and the U.S. does default, you could feel the effects.

"The most likely scenario is that veterans' benefits could be delayed; Social Security checks could be delayed. Any type of check coming from the federal government might get paid late," says University of South Carolina economist Dr. Bill Hauk.

Jack Jackson receives Social Security and says a delay in his checks would make his life pretty difficult. "Most of us that have paid in it through the years feel that it's something we paid for, and it wasn't voluntary. The government said this is what you will do,” he says. "I never, ever thought that I would hear the day that the United States government would even make any reference to not honoring that agreement."

Susan Appenzeller also receives Social Security, after retiring from working as a teacher and social worker. If her checks are delayed, she’d lose about 40 percent of her income. "And if you've worked all your life as a civil servant, you retire like a servant and you live still from paycheck to paycheck,” she says.

Dr. Hauk says there are other possible effects that almost everyone would feel if the U.S. defaults.

"If interest rates on U.S. government debt go up, well then interest rates start going up across the board throughout the economy. So car loans, home loans, mortgages, credit card bills, all of those interest rates you would probably start to see go up," he says.

College students could lose any federal financial aid grants, and student loan interest rates could go up.

The stock market would also likely drop, meaning anyone with a 401(k), IRA or any kind of retirement savings account would lose money.

Dr. Hauk says it’s also likely the country would go back into a recession, meaning many companies would downsize, laying off workers and making it harder for them to find other jobs.

  • Top StoriesTop StoriesMore>>

  • Self Regional Laptop With Patient Info Stolen

    Self Regional Laptop With Patient Info Stolen

    Friday, July 25 2014 5:10 PM EDT2014-07-25 21:10:32 GMT
    Photo courtesy Self Regional HealthcarePhoto courtesy Self Regional Healthcare
    Self Regional Healthcare in Greenwood reports a hospital laptop was stolen two months ago and is now warning patients their personal information may be at risk.
    Self Regional Healthcare in Greenwood reports a hospital laptop was stolen two months ago and is now warning patients their personal information may be at risk.
  • Greenville Rally Against Hatred Scheduled In Response To KKK

    Greenville Rally Against Hatred Scheduled In Response To KKK

    Friday, July 25 2014 11:16 AM EDT2014-07-25 15:16:29 GMT
    Greenville will host its first ever Unity Rally Against Hatred on July 26th.Greenville will host its first ever Unity Rally Against Hatred on July 26th.
    The first Unity Rally Against Hatred will be held at the Hughes Main Library in Greenville on July 26th to address the motives of the KKK.
    The first Unity Rally Against Hatred will be held at the Hughes Main Library in Greenville on July 26th to address the motives of the KKK.
  • Train Derailment Causes Ethanol Cars To Flip Over In Spartanburg

    Train Derailment Causes Ethanol Cars To Flip Over In Spartanburg

    Friday, July 25 2014 7:11 AM EDT2014-07-25 11:11:28 GMT
    Police, Fire, and Hazmat Officials in Spartanburg are at the scene of a train derailment involving cars carrying ethanol that happened near Daniel Morgan Avenue early on July 25th.
    Police, Fire, and Hazmat Officials in Spartanburg are at the scene of a train derailment involving cars carrying ethanol that happened near Daniel Morgan Avenue early on July 25th.
Powered by WorldNow

250 International Dr.
Spartanburg, S.C. 29303

Telephone: 864.576.7777
Fax: 864.587.5430
Email: webmaster@wspa.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.