 TITLE: How Should I Pay Down Debt During a Recession? CONTENT: How to Prepare Your Finances Before a Recession\n-----------------------------------------------\nWhile some recessions can hit quickly and unexpectedly, there are actions you can take ahead of time to make sure you're financially prepared for the next one.\n*   **Build up an emergency fund.** Anytime you have extra money in your budget, throw it into a dedicated savings account. Experts recommend stashing at least three to six months' worth of living expenses so you have a fallback if you lose income or encounter an emergency. It's best to have a dedicated savings account specifically for your emergency fund so you're not tempted to use your savings. Even better: Set up direct-deposit to ensure you set aside money every month in your emergency fund.\n*   **Live within your means.** You don't need to wait for an economic turndown to start cutting back. Even when the economy is chugging along smoothly, it's smart to stick to a budget and keep expenses low. Any remaining money can be put toward an emergency fund, retirement or debts.\n*   **Pay down debt****.** If you have any credit card debt or loans, put extra money toward your debt payments to make a bigger dent. That way, if you lose income in a recession, you'll have less debt to worry about and can make your money go further.\n*   **Improve your professional skills.** When times are good, consider expanding your skillset. Whether it's by learning new things on the job or taking online courses and earning a certificate, professional development can make you more valuable to your employer, and more competitive in the job market.\nKeep an Eye on Your Credit\n--------------------------\nWhile paying off debt can help you more easily weather a recession, you may find a need down the road for an emergency loan, a low-interest debt consolidation loan or even a mortgage refinance. If that happens, you'll want your credit to be in good shape to ensure you get the best possible rates and terms. Making all your payments on time and keeping credit card balances low are two of the best ways to do that. You can get a free credit score and free credit report from Experian to find out where you stand. END