(RALEIGH) -- President Barack Obama wants congressional leaders on both sides of the isle to test the waters among their members on several options to avoid a government default on August 2. NC State University economist Dr Mike Walden said interest rates would go up for everything if the country defaults on its debt.

"The interest rate on treasury securities sort of sets the stage for interest rates elsewhere in the economy. We'd likely see other interest rates go up.  The best guess based on analysis other economists have done is probably a half percentage point increase in interest rates," said Walden.

After the fifth straight day of negotiations between President Obama and Congressional leaders on Thursday, it appears a backup plan to avoid a government default may be in the works.