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What is a debt default? And the debt ceiling?



To default on a debt is to fail to make a scheduled payment on a loan. A sovereign debt default is when a country defaults on money it owes - as happened to Argentina in the early 1990s, for example.

What is the 'debt ceiling'?


The above video describes the political dimension of the debt ceiling. The US debt now stands at $21 trillion - see debt clock here

Some economists argue that this debt level is unsustainable in the long term. The key question Democrats and Republicans battle over is what to do about this.



Comments

  1. There lies the strength and weakness of the EU: whatever they do, all members feel the consequences. I'm glad I wouldn't have to deal with this headache of a financial problem. For my personal loans, I have my loan modification attorney for support.

    ReplyDelete
  2. Even as a working professional, I can feel the financial crunch. I'm having a hard time getting loans and paying off my IT contractor mortgages. I think things are definitely looking up, though.

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  3. One way to relieve your company of your financial problem is to file for bankruptcy. However, it does not work for all situations. You may want to consult a bankruptcy lawyer Las Vegas first.

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    ReplyDelete
    Replies
    1. Becoming more financially aware is the solution to most financial problems.

      Delete
  5. I agree with the last commenter. Problems can be avoided if we are all aware of our financial activities. One way to be prepared is to check Long Island mortgage rates first before acquiring a loan or even owning a house.

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