Staying away from anything political.

Nations have credit ratings, much like your credit score. The higher the rating, the better the credit worthiness/ability to pay off debts.

By lowering the credit rating from basically 100 (AAA - able to pay all debt on time) to like 95 (AA+ - more likely than not to be able to pay all debts on time) Standard and Poors has stated they think the US will have trouble paying debts on time. The reasons for this are many and varied. So not going there.

What impact does this have on Joe Sixpack? Rates on credit cards, loans, mortgages and other credit may rise. The value of the dollar v. other currency may drop, making things cost more. Inflation may rise.

How to survive. Live within your means. Pay yourself each paycheck, as in put some cash away and forget about it. Don't buy stuff because you want it, get only what you need. Look at your credit cards, use the one with the lowest rate, cut up the rest and pay them off. Call your credit card company if you have good credit and ask for a lower rate. Any credit you are currently carrying, pay off ASAP and save that money. Learn to live below your current income. It's not easy, and the sacrifices are not that great.