The United States Postal Service's financial situation gets worse every day.

The Agency will default on a 5.5 billion dollar payment to the federal government, if Congress doesn't act by August 1st.

It would be the first default in the 200 plus year history of the USPS.

A sluggish economy and people paying bills online have forced the Service to tap an almost 13 billion dollar Treasury department loan.

Some processing plants have already been shut down and thousands of employees have been offered retirement packages.

The USPS is also cutting hours at select post offices and is trying to discontinue Saturday delivery.