 TITLE: How Should I Pay Down Debt During a Recession? CONTENT: During an economic downturn, you should continue making payments on your debt obligations and bills as much as you're able to. You might prioritize paying down your credit card debt since it probably has the highest interest rates out of all your debts.\nPaying down your credit card debt helps you pay less in interest charges, which can save you thousands over time. If you only ever pay the minimum on high-interest debts, a significant amount of your payment will go toward interest rather than your principal, making it difficult to pay off.\nTake a few minutes to sit down and assess how much you owe in credit card debt. Write down the balance for each card as well as the card's interest rate and the monthly minimum payment. Once you have a sense of what you owe, it's easier to make an effective strategy to pay off credit card debt.\nIf you're able to pay off your credit card balances, you may choose to focus next on paying off loans such as student loans or an auto loan, which typically have much lower interest rates than credit cards. However, if you're not having difficulty paying these installment loans every month and you're concerned that you don't have enough in savings, it might be better to shift your focus to building up an emergency fund.\nNo matter how you choose to tackle your debt, make sure you're making payments on time every month, even if you can only pay the minimum. Late or missed payments can do major damage to your credit score since payment history makes up the biggest piece of your score. END