What is a debt downgrade?

At the risk of sounding like a complete idiot.... can someone please give me a simple and clear explanation of the debt downgrade? What is it, and what does it mean for the next few years?

Comments

  • Its a credit rating downgrade.

    Basically it means that they find our ability to pay back our debt is a risk.

    The rating we get is like your credit rating to get a credit card or loan.

    Ours has been lowered.Which means that it will be harder for us to get a loan and our interest payment will be higher.

    It will increase interest on loans,college,credit cards,mortgages,cars.And will eventually these increases will be passed on to the consumer.

  • Basically, the US government has had its credit score lowered. In reality, because only one of three ratings agencies has done it, it doesn't actually mean anything, maybe a few hundredths of a percent more interest to pay on any new government debt.

  • Higher interest rates for Americans.

    It's like having a bad credit score.

    Now combine higher interest rates with a terrible economy & the future just got a little dimmer.

  • its akin to credit score in a way ... its a moot point anyway

  • Pay more in interest on money borrowed.

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