Arizonans would take big hit if US defaults on debt - KLTV.com - Tyler, Longview, Jacksonville |ETX News

Arizonans would take big hit if US defaults on debt

SCOTTSDALE, AZ (CBS5) -

The chaos in Washington, DC is having an impact on Arizona, as residents worry about the fallout if the U.S. government defaults on its debt.

Melissa Gamez, of Scottsdale, is in the market for a new car but that big purchase may have to wait until the crisis is over.

"It would definitely impact my decision in whether I would buy one or not," said Gamez, 26.

Economists predict a major meltdown in financial markets around the world if lawmakers don't raise the U.S. debt ceiling by this Thursday.

Interest rates could skyrocket, which means car loans and home loans would be more expensive.

A $10,000 loan at 5 percent for four years would cost $230.29 a month.

A $10,000 loan at 10 percent for four years would cost $253.63 a month.

If interest rates go up, monthly payments on credit cards would also go up.

Investments like 401ks could come crashing down.

Dennis Hoffman is a professor at ASU's WP Carey School of Business.

He said that if the U.S. defaults on its debt, seniors may have to wait for their Social Security checks and Medicare payments.

And the pain on everyday Americans wont stop there, Hoffman said.

"It's not just the Social Security recipient we are talking about," said Hoffman. "It's anybody that works for a corporation or business that finances payroll in the commercial paper market, and that's a lot of folks. A vast majority of people, frankly."

Gamez doesn't think it's right that she be penalized for the incompetence in Washington.

"They're not making a decision, so I'm the one having to pay more money," said Gamez. "It's definitely unfair."

Copyright 2013 CBS 5 (KPHO Broadcasting Corporation). All rights reserved.

  • NewsMore>>

  • Missing Kilgore man found safe 1,000 yards from home

    Missing Kilgore man found safe 1,000 yards from home

    Friday, September 22 2017 9:21 AM EDT2017-09-22 13:21:23 GMT

    A Kilgore man, affectionately known to the community as "Bubba T," has been found safe after a daylong search. Rusk County Sheriff's Office PIO Sgt. David Roberts confirmed Friday morning that Chris "Bubba T" Terry had been found within a thousand yards of his home. Groups had begun searching for him after the 54-year old autistic man went missing Wednesday night. Terry is known as the Kilgore Bulldogs biggest fan. Around 9 p.m. Wednesday...

    More >>

    A Kilgore man, affectionately known to the community as "Bubba T," has been found safe after a daylong search. Rusk County Sheriff's Office PIO Sgt. David Roberts confirmed Friday morning that Chris "Bubba T" Terry had been found within a thousand yards of his home. Groups had begun searching for him after the 54-year old autistic man went missing Wednesday night. Terry is known as the Kilgore Bulldogs biggest fan. Around 9 p.m. Wednesday...

    More >>
  • Kilgore students join adults in search for missing 'Bubba T'

    Kilgore students join adults in search for missing 'Bubba T'

    Friday, September 22 2017 12:22 AM EDT2017-09-22 04:22:02 GMT
    Kilgore High School bell, rang at games after touchdowns. Community members hope the familiar sound will get Bubba T's attention. (Source: KLTV News Staff)Kilgore High School bell, rang at games after touchdowns. Community members hope the familiar sound will get Bubba T's attention. (Source: KLTV News Staff)

    On a Friday night you'd find Chris Terry, more commonly known as Bubba T, at a Kilgore High School football game. 

    More >>

    On a Friday night you'd find Chris Terry, more commonly known as Bubba T, at a Kilgore High School football game. 

    More >>
  • Preview of Carthage and Gilmer showdown

    Preview of Carthage and Gilmer showdown

    Friday, September 22 2017 12:19 AM EDT2017-09-22 04:19:27 GMT
    Carthage and Gilmer square off on Saturday night.Carthage and Gilmer square off on Saturday night.

    Since 2004, Carthage and Gilmer have combined to play in 10 state championship games, and claim eight state titles. So that's why Saturday's Class 4A showdown between the number one Bulldogs and second ranked Buckeyes is sold out. Carthage, who won the Class 4A division I title last year, knocked off Gilmer 55 to 37, snapping the then Buckeyes 23 game regular season winning streak.

    More >>

    Since 2004, Carthage and Gilmer have combined to play in 10 state championship games, and claim eight state titles. So that's why Saturday's Class 4A showdown between the number one Bulldogs and second ranked Buckeyes is sold out. Carthage, who won the Class 4A division I title last year, knocked off Gilmer 55 to 37, snapping the then Buckeyes 23 game regular season winning streak.

    More >>
Powered by Frankly