Obama made the remarks following meetings with the top eight congressional leaders from the House and Senate at the White House earlier today.
The President described today's discussions as "constructive" and he said work will continue through the weekend on reaching an agreement.
He said everyone acknowledged the importance of raising the debt limit by the August 2nd deadline and they are also aware that coming to an agreement may be politically painful.
Congressional leaders and staffers will work over the weekend to try and come up with a deal.
The president said he will will reconvene with lawmakers on Sunday.