A recession can come. It’s not too late to prepare.

If the United States wants decayAs a fear of some economists, the last memory will be one of the most expected crises.

There is a lot of time to prepare Americans. But are we ready?

First, some background: Three years ago, as the economy was fired from the short Covid-19 recession, economists were already Talking about another decline. Russia attacked Ukraine. Inflation was exhausted. Interest rates rose.

The months have passed, a recession did not come, and hopefully the United States hopes to achieve something “soft landing“It means no recession.

Now the fear of the recession is back. President TrumpThe campaign of import tariffs shook consumer confidence among other factors and He spoke to the stock market.

March CNBC Fed Survey In January, he laid the likelihood of the recession by 36% and 23%. JP Morgan Chief Economist Put the prices 40%.

The recession and not, the US economy hit the “slow patch” Veronica WillisWells Global Investment Strategy at Fargo Investment Institute.

Have someone Cash poor consumer or a Top 1% earHere are some steps you can take to protect your finance.

It is easier to pay credit card debt, especially in a decline.

However, if you have sources, it will be a serious time to reduce a high-interest debt. Average credit card is interest rate 24.2% largeAccording to Lendertree.

The financial planners say to make a duty gear so you should do more than make a minimum monthly payment: Pay a double pay, add $ 100 or pay the percentage of your income.

If you twist for cash, move the debt to another loan with a lower interest rate.

If you have a good credit, think of Zero-APR credit card. You will not show any interest for 15, 18 or 21 months. Each dollar that you pay is reduced.

Alternatively, balance a Home Capital Credit LineOr even individual credit. You can pay 8%, 10% or 12% percent. This is better than 24%.

The card rates are so high, any other financial purpose of this debt – is superior to any other financial purpose, including savings.

For people who owe cards, “usually do not make sense, because the interest rate you have started this savings is lower than the interest you will pay the debt Sean HigginsFinance professor at Kellogg Management School at Northwest University.

If you are free from your card debt, this is a good time to get your deposits.

Many financial specialists should be reduced enough to save three to six months of Americans: about $ 33,000, on averageaccording to investingpeddia.

Extraordinary deposits are available when such times are available worried about their work. Again there are 27% of Americans There is no emergency savingsBankatist reports.

“Of course, it’s easier to save when you are better than time when you lose your job,” he said More Statsone author and a financial professor at Santa Clara University.

Several American houses can quickly save $ 33,000, especially when it is difficult.

Instead, consider more modest goals: make a certain monthly income of emergency savings. Put the money in a High productivity saving account. Think a lot before you hit an account for a real ambulance for something short.

Now it’s not time to cancel your European holiday now.

“It would be very much in my opinion,” said Statman. “People have to live. People should have fun.”

Nevertheless, it can be a good idea to strike for a holiday or in advance for any large, unexpected cost. Separate money now because the costs do not empt your savings.

“You should think,” do you need a new car in the next few years? “I put money for that car?” “He said Timothy McGrathApproved financial planner in Chicago.

The classic investor is the dilemma: stock prices sunk, but you do not want to sell when it is low.

If you are a retirement, “The fact that 7 or 10% of the stock market is not so low,” Higgins said. Shares will eventually be back.

If something happens, the current climate “gets a great time to get shares, because you get them with a discount,” said Wells Fargo Willis. When the market is restored, your portfolio will be more valuable than ever.

If you have already retired and compiled your deposits, it is more difficult to prevent “not selling down.”

You “don’t want to withdraw from aggressive portfolios during the recession” Seth MollikinA certified financial planner in Charlotte in North Carolina.

Ideally, retirees are less exposed to shares. Experts say the devalved stock shares are looking for ways to pay their expenses.

When the stock is seeaws, the cost of investors is reminiscent of “diversify“Balancing risky shares with less variable bonds and other fixed income alternatives.

However, the stock exchange is not so easy to diversify when it’s already in the perpetration.

“It’s too late to start thinking of shares because this has already seen this bending.”

Nevertheless, you will find an opportunity to diversify in a sublime market.

“Good thing, the market volatility is not in just one direction,” he said. “You get the days of the market.”

Take a look at the mixture of stocks and bonds. Great market earners of 2023 and 2024 can leave you with allocation of shares higher than you want. If so, when prices are high, seek the opportunity to sell shares and rediscover within the gardens.

Alternatively, you can simply sit back and wait until the market is stabilized. It is easier to diversify when stocks are high.

“The problem is that the recession will be” temporarily “,” said Higgins.

This article first appeared in the United States: Do we enter into a recession? Here is to make preparation.