WATCH: Pols, Biz Leaders Say Defaulting on U.S. Debt Could Spell Disaster

As the national debt ceiling debate rages on in Washington D.C., local politicians and business leaders believe that failing to come to a compromise before the Aug. 2 deadline could have a "catastrophic" impact on Hauppauge area residents.

State Sen. Lee Zeldin, R-Shirley, and Town of Smithtown Supervisor Patrick Vecchio both believe the immediate impact, if Congress fails to reach a compromise, would be a spike in interest rates. This would affect all levels of governments and consumer borrowing on loans, mortgages, 401Ks, credit card debts and more.

If the interest rates spike, Vecchio said residents' taxes could increase if the Town of Smithtown is forced to borrow money in the future.

For local businesses, Nesconset Chamber president Steven Gargiulo said both business and consumer confidence would drop even further, making an economic recovery that much more difficult to achieve.

Yet as much as the lingering debate and refusal to compromise could spell disaster, Gargiulo said it's necessary to prevent the nation's spending from getting even further out of control. He believed its time for the people to force government to live within its means.