Government default affects day-to-day life
The government default will mean that the government won’t be able to pay its bills on time, but for most of the everyday people on the street life will go on.
Any impact we feel will take its time getting to us. The biggest change may be in interest rates, which will take a long time to rise.
The rise in interest rates will have the biggest impact on businesses, which would eventually lead to your wallet.
Local financial advisor Leroy Simpson says that’s because businesses would have to pay for the higher loan interest rates by raising prices.
Simpson says the best way to survive the crisis will be to hang on and ride it out.
He cautions that if you pull your money out right as the market starts to crash, you can run the risk of losing lots of money before the market can have a chance to recover.
"If you have a well diversified portfolio, with alternative investments, you'll be able to withstand this." Simpson says.
"It's going to get you through without a lot of volatility."
He also says that that diversification will allow you to survive other market dips in the future.
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