The United States has a lower credit rating, but what does that mean? Print

Have you heard all the talk in the news about national credit ratings and debt ceilings? What does it all mean?

Standard & Poor's downgraded the U.S.'s Credit Rating to "AA+" from "AAA+". In a report available online the S&P explains its reasoning. However, the U.S. Department of the Treasury is calling it a "2 trillion dollar mistake" in a blog post on the U.S. treasury site.  

According to a post on Dave Ramsey's facebook page this is how it breaks down: If the US Government were a family & their household income was $55,000 per year, they'd actually be spending $96,500—$41,500 more than they made! That means they're spending 175% of their annual income! So, in 2011 they'd add $41,500 of debt to their current credit card debt of $366,000! - Dave Ramsey

If you're interested in Dave Ramsey's books WCLS has them, along with plenty of other financial planning books!