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?
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.
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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.