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This Week in Credit News: The Default That Almost Happened

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The biggest credit news this week is all about the almost-default on the nation’s debt.

Relief Around World As U.S. Avoids Debt Default

While many Americans breathed a sigh of relief Wednesday evening when the U.S. House and Senate approved a deal that would end the government shutdown and raise the debt ceiling until early 2014, they weren’t the only ones celebrating. Many around the world, specifically investors, expressed their relief Thursday, with Asian markets rebounding and International Monetary Fund managing director Christine Lagarde welcoming the deal.

However, Lagarde cautioned that the U.S. needs to show more stability in its money management as its role as a world market has global repercussions.


The Top Debt Ceiling Concern: Nothing

Credit.com commissioned a survey prior to the shutdown-ending deal to track what Americans were most worried about happening should the government default on its national debt. The results were quite interesting.

The top response from survey participants when asked what their top concern was for their own personal finances should the debt ceiling not be raised was “none.” Roughly 3 in 10 Americans are not worried about interest rates rising or any negative impact on their assets in the event of the government defaulting.

Thankfully, Americans won’t have to worry again until Feb. 7, the next debt ceiling deadline.

@cdigang @CreditExperts

Why Americans Aren’t Concerned About a National Debt Default

Credit.com’s Co-Founder and Chairman Adam Levin did a great analysis of the survey results, examining why Americans don’t think a national debt default will impact them.

“This is hardly the first time that Congress wrapped itself in knots over problems it created for itself, or that any one of a number of politicians and talking heads declared that the financial apocalypse was at hand — only to be proved wrong,” Levin wrote. “It’s not even the first time Congress threatened to keep a lid on the debt ceiling. But between this budget showdown and that sequester, the last debt ceiling fight and the more recent government shutdown, the majority of Americans found themselves, at best, inconvenienced. Why, they must be thinking, is this any different? What’s the big deal?”

@adam_k_levin  @CreditExperts

Image: iStock

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