SPRINGFIELD, Mass. (WWLP) - Soon the federal government may have to prioritize its expenses and decide what it can and cannot afford.
22News found out how the debt limit crisis could affect Wall Street, Main Street and you.
If Congress does not raise the borrowing limit, that means the government will soon run out of cash and the ability to pay its bills.
Congressman Richard Neal called the debt ceiling stalemate a "manufactured crisis" that must be solved soon.
Cong. Neal told 22News, “This is not about winning. This is not about losing. This is about providing a successful model for American people.”
Experts agree. If lawmakers don't raise the debt limit so the federal government can continue to pay its bills on time, it'll affect your personal household budget.
According to Western New England University’s Associate Professor of Economics Karl Petrick, “Mortgage loans. Car loans. Credit card, new credit card applications. Student loans, absolutely. That's going to impact everyone very quickly.”
Thursday, lawmakers and President Obama worked on a temporary solution to Increase the borrowing limit for six weeks, so the government can pay for social security, Medicare and disability benefits on November 1st.
The House Republicans said Thursday's discussion was a good start to finding a solution to the debt ceiling crisis. To that hint of optimism, the stock market reacted quickly. The Dow jumped more than 300 points.
However, some people told 22News they are concerned about the increasing national debt.
Greg Lalak of Springfield said, “There's going to have to be some reduction of spending, along with perhaps a moderate increase for the foreseeable future, but you can't increase the debt ceiling indefinitely.”
Financial Advisor Mark Teed told 22News lawmakers getting one step closer to a solution has a positive impact on the stock market.