US Politicians Finally Seal A Debt Deal

President Obama has said a deal has been struck between Democrats and Republicans to raise the US debt ceiling and avert a default.

The country would have been unable to borrow money to pay its bills if Congress did not agree to increase the maximum level by Tuesday.

Economists have claimed that defaulting on the debt could push the already fragile American economy back into recession.

Mr Obama had said there are "plenty of ways out of this mess" but warned "we are almost out of time".

The US was in danger of losing its AAA credit rating which could have meant tax rises in the form of higher interest rates on mortgages and credit cards.