If the US defaults, raises the debt ceiling and other such Armageddon type fork in the roads you will eventually see interest rates go up, people unable to buy homes, harder times qualifying for credit and other such problems.
As of right now the government has decided to raise the debt ceiling, print more money, and keep key interest rates at historical lows for at least another 2 years.
Credit standards are tough but not too bad compared with what could happen if things continue to get worse in the US economy.
The trend in the credit business has seen credit card companies reduce credit lines for even those with high credit scores simply to reduce their exposure to risk in a terrible economy.
When credit lines are reduced this causes the debt to credit line ratio to change for a consumer and makes a credit score number decline for that person.
So right now even those who have traditionally had good credit score numbers could see that number decline simply because their credit lines have been reduced.
When it comes to electricity deposits you will see the credit score criteria hit more people because of the change in credit lines which will cause higher deposit amounts being requested.
The sad news is that we cannot indefinitely continue to raise the debt ceiling as the governments solution has simply been to print more money. Seeing credit line decreases is one of many problems with the governments answer to the failing economy. At some point a politician must basically do political suicide and freeze the debt ceiling and begin paying off debt.
You see the US is diluting the money supply by printing more money with nothing backing its value. This fiat currency is devaluing the bond holders value in US Treasuries such as China’s large investment in US treasuries.
Basically the US is in a serious crisis and the citizens do not even realize it yet but they are beginning to as people with perfect credit are now being asked for deposits to have lights turned on.
If this ponzi scheme finally ends where money stops being printed and the debt ceiling is forever halted it will be very hard for a few years as the government contends with not receiving revenue they have been getting for their ever increasing budget year after year.
The debt ceiling was raised again and hopefully that will be the last time. Even with a stop to government spending and debt accumulation there will be additional problems with interest rates going up, credit score criteria going up and yes that means your electricity deposit will be going up even more.
If you thought it was hard to get your lights turned on with no deposit in the past wait about 2 years from now and you will see that it is even harder and they will likely want more money.
There are still ways around the big deposit if your credit stinks and that is to look at prepaid electric companies. Below are some points to consider before choosing a prepaid company.
- Does the company estimate your usage or do they use exact usage from an advanced meter?
- Can you find multiple negative comments from prior customers on the internet?
- Do they disclose what the per kilowatt rate is or do they only show the start up fee?
- What is the companies rating with Public Utility Commission of Texas.