The Impending Threat of U.S. Default and Its Consequences.

The U.S. could run out of money to pay its bills by June 1 if a deal to raise the debt ceiling is not reached. Breaching the debt ceiling could hurt Americans financially in several ways, including disrupting financial markets, delaying Social Security payments, and potentially impacting care for older Americans on Medicare and low-income households that rely on Medicaid. A breach could also raise the cost of borrowing, including on credit cards, and lead to a surge in mortgage rates, potentially causing a recession. However, experts believe that the pressure to fix the situation would be so intense that a default wouldn't last long.