Michael Linden, Sarah Ayres: Top ten facts you need to know about why we need to raise the federal debt ceiling

  The U.S. Congress this weekend and early next week will hopefully reach a deal to raise the federal debt ceiling before time runs out on August 2. Here are 10 facts that you need to know to understand why we need to raise the federal debt ceiling by then, and why we’re in this mess in the first place.

  1. Failing to raise the debt ceiling will cause a downgrade in the United States’s AAA credit rating, resulting in higher interest rates for American families and businesses. Rating agencies S&P and Moody’s say they will downgrade the United States’s credit rating if the government fails to raise the debt limit by August 2. U.S. creditworthiness keeps interest rates low, easing the burden on consumers and homeowners while allowing businesses to invest. If the debt limit is not raised, American families and small businesses will pay the price in the form of higher interest rates.