Nation worries as debt default nears

Published On: Dec 24 2013 11:13:55 AM EST
Updated On: Oct 14 2013 06:25:18 PM EDT

VIDEO: As the deadline nears close we take a look at what it could mean for you if the government defaults on its debt.

JACKSONVILLE, Fla. -

Uncertainty continues in the financial sector as the U.S. government moves toward the possibility of defaulting on its loans if a deal isn't reached in Washington D.C.

If the U.S. debt defaults, experts say what follows could be a repeat of 2007, when the economy tanked and the real estate market plunged.

"It's scary. I have two young children, and it's scary raising a family with all this going on," Holly Chapman said.

"It's going to destroy a lot of people that needs help really bad," Gary Land said. "Then where are they going to turn when they can't run to their own government?"

Joe Krier, a financial expert at Krier Wealth Management, said he's sure the U.S. Congress will take action before the nation goes into default, because if it doesn't the consequences will be bad in practically every sector of the economy.

"Real estate, mortgage financing, auto sales, any big ticket purchase would come to a screeching halt until it's sorted out," Krier said.

He said as horrible as the doomsday predictions are, he doesn't expect it to become a reality. He expects Congress to act.

"Politicians are out for politics, but they're also out for self-preservation," Krier said. "And if they allow a default on our treasury, not only would they throw things into chaos, but they would be out of power in a heartbeat."

Krier said the biggest problem would be this would mean people could no longer trust U.S. treasury bonds, which have been the safest thing in the financial sector. He said that would really throw things into chaos.

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