Lew testifies, Obama to meet with House GOP, Senate Democrats [UPDATE] WASHINGTON, Oct. 10 (UPI) -- Additional borrowing costs incurred by failure to raise the debt limit "could not easily be undone," U.S. Treasury Secretary Jack Lew warned Congress Thursday. "If interest rates rose, it would have a real impact on American households," Lew's prepared testimony before the Senate Finance Committee said. The stock market, including investments in retirement accounts, could tumble, and it could become more expensive for Americans to buy a car, own a home, and open a small business. "These additional costs of borrowing could not easily be undone and our actions would impact Americans for generations to come," Lew told the committee. Failing to raise the debt ceiling will impact everyday Americans beyond its impact on financial markets. Lew told the panel he would do all he can to minimize the effects of breaching the $16.7 trillion debt ceiling but couldn't guarantee what would be paid. From Oct. 17 to Nov. 1, Lew said, large payments are due to Medicare providers, Social Security beneficiaries and veterans, as well as salaries for active-duty military personnel. "A failure to raise the debt limit could put timely payment of all of these at risk," Lew said. He closed by noting finance ministers were in Washington for the International Monetary Fund and World Bank annual meetings. "The United States is the anchor of the international financial system," Lew said. It is the world's largest economy with the deepest and most liquid financial markets. When risk rises, the flight to safety and to quality brings investors to U.S. markets. Other countries look to us for how to govern and how to maintain economic vitality. ... A default for the first time in our history could pose serious risks to our global standing. The testimony came ahead of plans by President Obama to host the Senate Democratic caucus and the House Republican leadership at the White House. The House Democratic caucus met with the president Wednesday. Congressional leaders from both parties began some preliminary discussions to try to resolve the impasse, opening the federal government -- partially shuttered since Oct. 1 -- and raising the debt ceiling. House Democrats began showing kinks in their unity, with 26 Democrats planning to attend a bipartisan event Thursday with the group No Labels, The New York Times reported. Among other things, No Labels is calling for negotiations to start immediately, challenging President Obama and Democratic leaders who say they won't negotiate until the government reopens and the debt ceiling is lifted. Lew has said the country will bump against the debt limit Oct. 17. As the deadline drew closer, House and Senate Republicans were floating ideas Wednesday for raising the debt limit -- if only for a short time -- hoping to bring Obama to the negotiating table. One idea was proffered by House Budget Committee Chairman Paul Ryan, R-Wis., who briefed conservatives on a plan to raise the debt limit for six weeks, which would give party leaders time to negotiate a broader agreement. Ryan's plan, outlined in a Wall Street Journal commentary Wednesday, did not go into details and called for about $200 billion in spending cuts to offset the cost of raising the debt limit. Ryan's proposal drew broad support from conservatives at the meeting, lawmakers who attended told the Times. Republicans leaving the closed-door session expressed support for a short-term measure even if it doesn't address the 2010 healthcare reform law, which conservatives have tried to either curtail or defund, sparking the shutdown 19 days ago. "It may make more sense to avoid back-to-back financial crises," said Rep. Kevin Brady, R-Texas, referring to the government shutdown and debt-ceiling deadline. We may need some extra time to pull the right package together. The Times said many of the conservatives supporting a short-term extension of the country's borrowing authority said they are willing to keep parts of the government closed to keep fighting over the healthcare law. However, senior GOP advisers said late Wednesday they also were considering an increase with no strings attached. House Republicans scheduled a private meeting early Thursday to review their options. Thursday's meetings at the White House are aimed at breaking the impasse, reopening the government and raising the $16.7 trillion debt limit. Obama invited the entire 233-member GOP House conference to join him at the White House, but Republican leaders decided to send an 18-member group of top leaders and key committee chairmen, the Post said. Congressional Republicans distributed a memo from Moody's Investors Service, a leading credit-rating agency -- that seemingly downplayed the threat of default. In the memo, the agency said the Treasury Department likely would still pay interest on the government's debt even if Congress won't lift the borrowing limit, preserving the nation's credit rating. Still, House Republicans are taking hits from some longtime supporters over their stance, the Times said. Business groups called for the immediate reopening of the government, and benefactors such as Koch Industries publicly distanced itself from the shutdown stalemate.