Sarah Rasner, Neldovalette
We are not in a recession (at the time of this writing at least), but that doesn’t mean that people are not stressed. A Nerdwallet survey found that 85% of Americans are concerned about tariffs, while 45% are worried that tariffs could lead to a recession.
Experts aren’t too late to fear. For example, in early April, JP Morgan Research increased the likelihood of a 2025 recession from 40% in the beginning of 2025.
“There is a lot of worry and concern about what is unknown right now, but there is comfort in what is known,” says Bruce McClary, Senior Vice President of Membership and Communications at the National Foundation for Credit Counseling (NFCC). “There are a lot of things that may be outside of your control, but if you have the right information and take the right steps, there are a lot in your control.”
Even in a stable position, there are ways to increase your financial resilience. When time gets tighter, your trustworthy health is important. If you need to diversify your unexpected expenses payments, you can offer more options. If you are struggling to open a new card and buy an invoice, you are negotiating with the card issuer to ask for help.
Whether we actually fall into a recession this year, these actions will help you feel ready to handle anything you do.
1. Check your spending
The first step is to know how much money you’ve got in and out. Step 2 is breaking exactly what you’re spending money on. This is where technology can be made functional. According to Estela Nagahashi, interim CEO of University Credit Union, artificial intelligence-based budgeting tools can quickly tell you how much you are spending in a particular category.
For example, you can upload your credit card and bank statements to ChatGpt and ask them to break down your spending by category. You can also create a chart showing the total spending. “This helps you understand your spending and plan,” she says.
2. Check in for the emergency fund
Despite its name, the emergency fund is not just about the cost of visiting emergency care. According to Brad Clark, the Indianapolis investment advisor’s president, emergency situations are merely irregular costs. “They always happen.”
The NFCC’s 2025 Financial Literacy and Preparatory Survey found that 48% of US adults feel they are constantly treading financially, attracting unexpected costs.
By adjusting your budget, you can free up more money to hide your emergency funds. And being able to use that money can help you avoid or limit credit card debt when the roof leaks or when your car needs new tires.
3. Keep your credit score in good condition
Maintaining a high credit score gives you options. You are more likely to qualify for a wider range of credit cards, access other loans at low interest rates, and you can approve rental homes, among other things. This is important when you need the ability to transfer for loans or employment opportunities.
Economic situations can affect access to credits based on scores. Lenders tightened their belts in 2020, with many balanced transfer credit cards halting acceptance of new applications. Those still available required excellent credits to qualify.
The main way to keep your credit score healthy is to pay all your bills on time. This includes credit card bills, loan payments, and other expenses such as rent and utilities. If you missed your payment, you can significantly reduce your credit score. Turn on text and email alerts in the credit issuer app to avoid late payments by setting up autopay for your credit cards and other invoices.
4. Plan for debt repayment
Debt repayment methods such as debt avalanches and snowballs (if you prioritize payments at either interest rates or amounts) can help you maintain organisation. But you’ll also be strategic about where you balance.
“If you carry the largest balance on a card that charges the highest interest rate, you’re not giving yourself any benefits,” says McClary.
This is where debt consolidation can help. This is because you can move your high-interest debt to a new loan that charges less interest, which saves you a significant amount of money as you pay off your debt.
If you have credit card debt, now is the time to look into your personal loan and balance your credit card. In times of economic turmoil, lenders become more cautious and more difficult to qualify.
5. Find out the benefits of cards that are important to you
Credit card rewards can reduce costs, whether you earn cashback on daily purchases or earn points that allow you to travel at a discount.
Balance Transfer Cards, and no profit cards for new purchases, give you time to repay the balance of 0% APR.
Your card may come with other useful perks, such as mobile phones and travel insurance, eliminating the need to pay individually for these protections.
Cards may also offer the ability to pay off recent large purchases in installments. “Many credit cards now offer the ability to convert selected transactions into low interest payments, but more than a third of debt cardholders don’t know if their cards offer payment plans.”
These features help you save money, but it’s important to understand how they work. Nansui recalls a recent conversation with members of the credit union. They used cards with profitless promotions to buy air conditioning units, but they didn’t realize that if they didn’t repay the balance by the time the promotion was finished, interest would start to arise.
“I always tell members ‘Please pay attention to the terms of use’,” she says.
6. Don’t hesitate to ask for help
If you can’t afford a credit card bill, don’t hide it from the card issuer. Collects financial information such as your credit score, budget, and current source of income. Call the number on the back of your card and talk to your bank about any adjustments you may be happy to make to help you at this time.
Asking help before you miss payments will give you more negotiable power. According to Southwest, if your credit card bill is delayed more than 90 days, the issuer is reluctant to cooperate with you.
“Your credit card company really doesn’t know what’s going on in real time. This has an impact on your ability to pay on time,” says McClary. “You’re helping them find an alternative to what you’re going to get into debt collection or worse.”
Sara Rathner writes for Nerdwallet. Email: srathner@nerdwallet.com.
The article’s smart credit cards will be moved to create them in the recession that originally appeared on Nerdwallet.
Original issue: May 5, 2025, 2:24pm EDT
