Explaining The Debt Limit And Why Congress Will Likely Raise It Again

The debt limit went back into effect Aug. 1, and the Treasury Department is taking "extraordinary measures" to ensure the U.S. doesn't default.

The national debt limit is again up for debate on Capitol Hill. So what exactly is it?  

"Congress puts a limit on how much can be borrowed in total from the U.S. government, how much total debt they can have. And the debt ceiling is that limit. It's an amount of borrowing we cannot breach," said Marc Goldwein, policy director at the Committee for a Responsible Federal Budget. 

The debt limit, or debt ceiling, is a fixed number, which means from time to time Congress needs to vote to raise or suspend it. If that doesn't happen, the U.S. would default on its debt or other financial obligations, and that could have significant impacts not only in the U.S. but around the world. It's unclear exactly how bad it would be since it's never really happened before. But experts warn of a "global financial crisis."