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Credit rating agency Standard & Poor's downgraded the U.S. credit rating for the first time ever from AAA to AA+.

John Chambers, the head of sovereign ratings for S&P, told CNN much of the blame falls on the hands of Congress and it's inability to stabilize the country's debt situation with the deficit reduction plan that was passed on Tuesday.

"Our political view of the United States have been altered," Chambers said. "We've taken the rating down a notch. The political brinkmanship over raising the debt ceiling was something that was really beyond our expectations. The U.S. getting to the last day before they had cash management problems. There are very few governments that separate the budget process from the debt authorization. And we also think more broadly that this debate -- although we do have an agreement that will deliver $2.1 trillion dollars in savings over the next decade, it's gonna be difficult to get beyond that, at least in the near term. And you do need to get beyond that before the debt to GDP ration is going to stabilize."

So what exactly does all this mean?

The New York Daily News reports that it hit will hit Americans directly in their pocketbooks by raising borrowing costs.

With the country's trust factor dented by political haggling in Washington, the fallout has the potential to affect mortgage rates, credit card bills and boost borrowing costs for American consumers and companies.

The downgrade could further weaken an already-fragile economy by undermining investors' faith in U.S. bonds, increasing borrowing costs and further slowing whatever chance there was of a recovery.

It could also increase the cost of home mortgages, auto loans and other types of lending tied to interest rates paid on U.S. Treasuries.

JPMorgan Chase estimated that a cut would raise the nation's borrowing costs by $100 billion a year, Bloomberg News reported.

Republicans and Democrats are already pointing their fingers at each other, which is what helped to get us here in the first place. Our political parties have to find a common ground and be able to work together if things are going to get better.