Will the National Debt be Fixed In Time for You and Me?
The idea behind the debt issue in the country is squarely on the shoulders of Congress. A few posts back I wrote about the national debt ceiling and what would happen if we hit the actual limit of the debt. In order to avoid the negatives of this particular happening, Congress would need to agree to raise the debt ceiling by September. If the debt ceiling is raised then there would be the issue of how to keep the debt from rising too high (thus putting ourselves in another similar situation.
Should the country reach the point of no return, there are things much worse to deal with than having to redo the national budget. There’s a possibility that the stock market could crash and the nation could fall into another recession. This would cause interest rates to rise and put the government into an even deeper hole.
However, this should not deter you from doing your due diligence with your own debts. Should anything happen to the National Debt, be it good or bad, you should always have a mind towards handling any debts you harbor until they are gone. There will always be unknown factors that could affect our ability to make monthly payments or significantly handle whole debt amounts. If you have strong reason to believe that your source of income is in jeopardy, it would be wise to plan ahead for it.
How one should plan for something of this ilk depends on what your financial capabilities are. No matter how much you make, there should always be something going into some sort of savings account. This would allow for a certain amount of savings to be left for emergency purposes. If you haven’t started saving yet, work it into your budget in a way that would allow you to live off of your savings should you need to. Plan ahead of any financial crisis that may come your way in order to remain stable in times of uncertainty.