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The implications would be severe and pronounced for all Americans, but most especially for the poor, the elderly, and the middle class. Growing federal debt also would increase the probability of a sudden fiscal crisis, during which investors would lose confidence in the government’s ability to manage the budget and the government would thereby lose its ability to borrow at affordable rates. federal spending in 2013, combined with depressed receipts from a weak economy, is on track to result in a deficit of 0 billion.

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It is vital in assessing their sustainability to consider their long-term implications.Academic research shows that advanced economies like the United States are at risk of significant and prolonged reductions in economic growth when public debt reaches levels of 90 percent of GDP.High public debt threatens to drive interest rates up, to crowd out private investment, and to raise price inflation. policymakers should learn from Greece and Japan and avoid a fiscal crisis and economic stagnation brought about by public debt overhang.Another benefit is that there is just one single payment to keep track of, rather than multiple credit card payments to different companies.The primary disadvantage to credit card consolidation is that you still have to pay back 100% of your unsecured debt plus interest (which may be less than your interest rate prior to the consolidation but likely will still add up over time, often to more than the original debt).

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