Greg Hoffman, Financial Advisor
NEVADA, MO.--- First, it was a battle over the budget that lead to a government shutdown. Now, a new fight is looming in Congress over the debt ceiling. The current federal debt ceiling is 16.7 trillion dollars. The debt ceiling allows the government to borrow funds to cover the federal budget.
If the government is not able to pay off its loans, local residents may need to adjust their own personal financial portfolios. Raising the debt ceiling allows the government to borrow funds to cover the federal budget. If the debt ceiling stays in place, the treasury won't be able to borrow more money to finance a new budget.
"Social security payments may not be paid on time. Military benefits may not be paid on time. A significant increase in unemployment by government employees," said Greg Hoffman, Financial Advisor.
Financial Advisor Greg Hoffman says that residents of the Four States should be more informed and should prepare their personal portfolios in case the government defaults.
"The normal person in Nevada and the Four States area could see normal interest rates on car purchases, credit cards go up significantly if the world begins charging us higher interest rates for loaning us money," said Hoffman.
Hoffman says people should be proactive.
"I would suggest that people take a moment and review their investments. Make sure they are diversified quite adequately. Talk to their financial advisor and see how their investments are currently positioned," said Hoffman.
Hoffman says the biggest thing that Four States residents can do is not panic. He thinks the economy is strong. He was very optimistic in thinking the shutdown and the debt ceiling crisis should be resolved fairly soon.
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