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This Is How Young People Can Prepare for a Recession

by Mud Editorial

**This advice varies based on your income and financial situation. If you're unsure about how to move forward, you should always consult with a financial advisor.


According to the New York Times, "there is little doubt that the nation is headed into a recession because of the coronavirus pandemic." Businesses are shutting down, people are staying inside, and little spending is happening in certain sectors.


So, how can you take steps now to protect yourself from a recession?


If you don't know what a recession is, it pretty much means a period of economic decline. We were all in elementary school during the Great Recession, so it is normal if you might not remember too well how it looked like. However, since some of us are graduating soon and heading into the "real world," it is key that we take measures into consideration.


1. If you can, focus on paying off your high-interest rate debt


We recognize that it is a matter of privilege to have credit, and also to be able to pay it. Many college students often have credit cards to use for emergencies or to build a credit. If you can, try to pay off your credit debt asap, especially the one with a high interest rate. If your rate is low enough, you may want to focus more on building an emergency fund. But if you can, make paying it off a priority.