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cover of episode What to Do When the U.S. Gets Downgraded and Your Travel Credit Card Stops Paying Off

What to Do When the U.S. Gets Downgraded and Your Travel Credit Card Stops Paying Off

2025/5/29
logo of podcast NerdWallet's Smart Money Podcast

NerdWallet's Smart Money Podcast
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Anna Helhoski
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Elizabeth Ayoola
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Melissa Lamberina
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Sam Taub
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Sean Pyles
作为 NerdWallet 的《Smart Money》播客主播，Sean Pyles 提供了深入的财务和保险知识，帮助听众做出明智的财务决策。
Topics
Anna Helhoski: 穆迪下调美国信用评级，虽然评级仍然稳定，但这反映出对美国经济前景的信心减弱。评级下调与债务上限问题有关，但也考虑到国家更广泛的金融稳定，包括总体债务和利息支出。违约可能对国家和世界经济造成灾难性影响，导致美国债务抛售、货币市场基金售罄、联邦福利暂停、利率上升、股市暴跌和退税延迟。个人层面可能面临更高的利率和更严格的信贷要求，违约可能引发波及全球的经济衰退。 Sam Taub: 穆迪下调评级后，最直接的投资影响是国债收益率飙升。国债收益率上升意味着国债购买价格下降。评级下调并不意味着违约的可能性很大，只是将可能性从几乎不可能提高到非常不可能。国债仍然是非常安全的投资，评级下调意味着它们支付的利息比以前略高。短期国债的利率可能高于一年期存款证明，且利息免征州和地方税。债券利息支付已占今年政府总支出的14%，如果这个数字不能下降或上升，将限制政府的支出能力。

Deep Dive

Chapters
Moody's downgraded the U.S. credit rating from AAA to AA1, impacting treasury bonds, other government bonds, and the stock market. Higher yields on treasury bonds increase the government's interest expense, potentially limiting spending. Despite the downgrade, treasury bonds remain a safe investment, and short-term treasuries offer elevated yields.
  • Moody's downgraded US credit rating from AAA to AA1
  • Downgrade impacted treasury bonds, other government bonds, and stock market
  • Higher treasury bond yields increase government's interest expense
  • Short-term treasuries offer elevated yields despite downgrade

Shownotes Transcript

Learn what a U.S. credit downgrade means for your portfolio, plus find out when it might be time to cancel your travel credit card.

What does the U.S. credit rating downgrade mean for your investments? Should you cancel your travel credit card if the perks no longer justify the fee? Hosts Sean Pyles and Elizabeth Ayoola discuss the U.S. government’s recent credit downgrade by Moody’s and how it could impact markets, borrowing costs, and long-term economic stability. Joined by NerdWallet news writer Anna Helhoski and investing writer Sam Taube, they break down the downgrade’s broader implications and offer tips on navigating bond yields, safe investment vehicles, and economic uncertainty.

Then, Sean and Elizabeth are joined by credit cards Nerd Melissa Lambarena to answer a listener’s question about canceling a high-fee travel credit card. They explore the pros and cons of closing accounts, how to audit whether a card’s perks are still worth the fee, and alternatives like downgrading to a lower-fee card. They also cover how to track credit card value, minimize credit score impact when making changes, and optimize benefits like lounge access, rental car perks, and more.

Card benefits, terms and fees can change. For the most up-to-date information about cards mentioned in this episode, read our reviews:

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United Quest card review: https://www.nerdwallet.com/reviews/credit-cards/united-quest) 

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United Explorer card review: https://www.nerdwallet.com/reviews/credit-cards/united-explorer)  

NerdWallet offers a Treasury account through a partnership with Atomic: https://www.nerdwallet.com/lp/treasury-account) 

What is a credit card product change and how does it work? Instead of opening a new account, you could ask to change to a different card. Here's when and how to do so: https://www.nerdwallet.com/article/credit-cards/credit-card-product-change) 

In their conversation, the Nerds discuss: US credit rating downgrade, Moody’s downgrade 2024, what happens if US defaults, effects of US credit downgrade on investments, treasury bond yields 2024, how to evaluate credit card perks, downgrade travel credit card, how to keep a high credit score without using credit cards, short-term Treasury bills, Treasury accounts vs savings accounts, investing during economic uncertainty, Moody’s credit rating explained, credit rating agencies, U.S. debt ceiling 2024, credit card points strategy, tracking credit card rewards, how to downgrade a credit card, budgeting for credit card annual fees, short-term treasuries vs CDs, best way to manage multiple credit cards, using perks to offset credit card fees, and investing during economic downturns.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected]).

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