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Fortune

Ivana Pino

The U.S. debt ceiling explained, plus 3 ways it can impact your finances

Wes Moss Social Security

Photo illustration of the US Capitol building gradually turning red at the top in front of a background of floating $100 bills. (Credit: Photo illustration by Fortune; Original photos by Getty Images (2))

On Thursday, the U.S. government officially hit the $31.4 trillion debt ceiling.

Translation: The government is cut off and no longer able to pay its bills without taking extraordinary measures.

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