Nightly News   |  October 07, 2013

Why you should care about the debt ceiling deadline

The government shutdown is nothing compared to the potential economic peril that could result if leaders don’t agree to raise the nation’s debt ceiling. NBC’s Chuck Todd reports.

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>>> here in this country, day seven of a government shutdown , a growing number of americans are feeling the effects and meanwhile an even scarier deadline face it is nation that could have a direct impact on almost every household. we have two reports on this tonight beginning with our chief white house correspondent chuck uh todd. good evening.

>> reporter: good evening, brian. the government shutdown , it doesn't appear an end is in sight but the no, ma'am ominous deadline has to do with the debt ceiling. without action by congress it means the government couldn't borrow money to pay bills like social security or even interest on the debt. defense secretary chuck hagel ordered most of the civilian pentagon staff back to work today. the catch -- no actual paycheck until the government is re-opened. when that happens, it's anybody's guess with neither side budging today.

>> there is not a subject that i am not willing to en gauge in, work on, negotiate, and come up with common sense compromises on. we are not going to negotiate under the threat of a prolonged shutdown.

>> now the american people expect when their leaders have differences and we are in a time of crisis that we'll sit down and at least have a conversation. really, mr. president. it's time to have that conversation.

>> reporter: but the government shutdown showdown is nothing compared to the potential economic peril if political leaders don't agree to raise the debt court of appeal ing in the coming week s.

>> if that end s up stopping because the government doesn't have money to spend or can't borrow, everybody is going to feel that.

>> reporter: here's how it could hurt you at home. shopping for a car? the 0% or low interest car loans , gone. thinking about refinancing your house to lower your mortgage payment? forget about it. mortgage interest rates could skyrocket. your debt load could increase. why? if you pay interest on credit card debt you will pay more thanks to interest rate spikes. given that the president cranked up the debt ceiling rhetoric today.

>> we are not going to negotiate under the threat of economic catastrophe .

>> reporter: the debt ceiling fight is still down the line. for now it's affect ing the