 TITLE: How Should I Pay Down Debt During a Recession? CONTENT: What to Do if You Can't Afford to Pay Off Debt\n----------------------------------------------\nIf a recession puts you in a position where you can't afford to pay your debts, you should take action immediately to prevent some unpleasant consequences. Here are a few debt relief options to consider:\n*   **Work with your lender**: As soon as you know you won't be able to make your next payment, contact the lender and let them know. Tell them you're struggling financially due to the recession and ask if there's anything they can do to keep your account in good standing. Some lenders and creditors are more lenient during economic downturns, and they may provide relief options such as temporarily lowering or deferring your payments.\n*   **Debt consolidation**: Consolidating high-interest debts is a simple way to lower your interest payments, and it's something you can do yourself. One way to do this is to get a debt consolidation loan or to do a balance transfer to a credit card with a 0% APR introductory period.\n*   **Credit counseling**: A nonprofit credit counseling agency can help you understand your debts and put together a budget. If you can't make ends meet, the agency can put you on a debt management plan where you pay the agency a monthly sum they then use to pay your lenders and creditors on your behalf. They may also be able to work with lenders to negotiate lower interest rates.\n*   **Debt settlement**: Rather than creating a modified repayment plan like credit counselors do, debt settlement companies negotiate with your lenders to reduce the amount of debt you owe. However, these companies typically ask you to stop paying your debts while they do the negotiating, which can result in steep fees and damage to your credit. This is not a recommended option. END