U.S Debt is $417B Lower than the Debt Ceiling

by San Antonio Attorney

The US debt has reached the $16 trillion mark this week, a milestone that has been foreseen. Although notable, it overrules the figure that is a more significant problem to Congress:  how much debt is under the legal credit limit.

Currently, the debt limit is $16.394 trillion. In August, the debt ceiling was $15.977 trillion – about $417 billion lower than the borrowing limit.

Because the government normally borrows somewhere between $100 billion and $125 billion on a monthly basis, this means it is on course to reach the limit in December.

Nevertheless, the Treasury Department may use certain extraordinary means to maintain the amount of debt lower than the limit for two months.

But Congress may have to increase the debt ceiling early next year or Treasury will probably default on the nation’s legal obligations due to non-payment of its bills before their due.

In the past, Congress waited until the very last moment to take action.

In spite of the disturbance ahead, the reality is the current debt of the country is the consequence of both parties’ decision making in the past to spend more– either for the reason that they approved expansion or new programs or huge tax reductions.

House Speaker John Boehner cautioned earlier that Republicans will not allow a further increase to the debt limit without matching larger spending cuts.

That can be challenging considering that the House had a tough time producing $15 billion to cover the highway bill. If Congress plans to increase the debt ceiling to pay for next year’s expenses, they may need to increase borrowing by $600 billion or more.

The debt ceiling brawl last year concluded in an increase of debt ceiling by three-part complemented by spending cuts of $2.1 trillion.

 

-  Bankruptcy provides debt relief and give you a fresh financial start. Many consumers wait a very long time before seeking debt relief. If you are carrying a debt load that cannot be paid on your net income, it is best if you talk to a Debt Relief Attorney.

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