How Finance Experts Are Preparing for the Next Recession

How Finance Experts Are Preparing for the Next Recession

Worried that America is headed into its next recession? Here are some expert tips to make sure you're in the best financial position possible…just in case.

Is America headed for its next recession?

Benjamin Franklin's look on a hundred dollar bill. Benjamin Franklin portrait macro usa dollar banknote or billFototocam/Shutterstock

A quick search online would have you believe a recession is imminent. According to an Economic Policy Institute report published in April 2019, there is a "real possibility" that the United States could find itself in a recession as soon as the next 18 months. Lauren Anastasio, a certified financial planner with SoFi, a personal finance company that offers student loans, personal loans, investing and more, says while it's hard to know exactly when, "what we do know for certain is that we will see another recession, and we just have to deal with it."

With memories of the Great Recession of 2008 still fresh in many people's memories, the idea of another recession is worrisome. So what should you do to prepare?

We asked financial experts to weigh in on how Americans should plan for the next recession. You may also want to consider these 12 recession-proof careers that will survive the next economic downturn.

Pay off high-interest-rate debt

Sad African family facing financial difficulties, having many debts, calculating domestic expenses, forced to save money on groceries to pay off their loan, sitting in kitchen with laptop and papersWAYHOME studio/Shutterstock

"This should be a high priority regardless of where we are in an economic cycle, but it becomes ultra-important when we may be facing a period of contraction where employment is likely to fall," says Anastasio. If you can't pay off all debt, Tendayi Kapfidze, chief economist at LendingTree recommends consolidating debt or refinancing debt to lower interest rates. "This should also lower your monthly payments and make your monthly budget more manageable," he says. You'll also want to heed these 12 credit card rules you should never break.

How Finance Experts Are Preparing for the Next Recession, Source:https://www.rd.com/advice/how-experts-preparing-for-next-recession/