EAST LANSING, Mich. (WLNS) — Democrats and Republicans have until June 1 to agree on raising the debt ceiling.

If they don’t, economists fear that it could send the U.S. spiraling into another recession, as the nation would default on the $31.4 trillion debt ceiling.

In more simple terms: we don’t have the money to pay our bills.

According to Michigan State University economics professor Charles Ballard, if the U.S. does end up defaulting, other people around the world will rethink investing into the U.S.

If we fail to do something, people could see higher interest rates on credit cards and mortgages.

“A default would likely lead to all sorts of problems in the financial services sector,” Ballard said. “Probably more banks would fail, bank lending would be severely curb tailed, and unemployment would probably rise and maybe rise by a lot.”

Ballard said politics are to blame for no solution having been reached so close to the deadline.

Republicans have proposed a 13% cut across the board on federal spending. Where Democrats are asking President Joe Biden to use the 14th amendment to raise the limit without GOP approval.

Negotiations are scheduled to resume once Biden arrives back to Washington, D.C. Sunday night.