Before you can prepare for a recession, it’s important to know what it is.
A recession is when the country's economy drops over several months or, in some cases, years. During the recession period, the country's gross domestic product, or the value of the goods and services it produces, drastically drops. Due to inflation and high levels of unemployment less money is spent in the market.
Recession Preparation
Preparing for a recession is essential, as many economies are currently reeling from the effects of the COVID 19 pandemic. There are signs that the economy is stalling, like the dramatic rise in oil and gas prices. More companies are finding it difficult to sell their products, which leads to layoffs in the workforce.
While it sounds scary, it is essential to note that a recession is part of any economy. At United Community we are here to help anticipate and prepare for future financial uncertainties and will remain here to help you weather the recession storm.
Some of the products that you can use to get through the challenging economic times include:
Credit Cards
When a recession hits, it becomes more difficult to survive, especially if you don't have emergency funds. The cost of living is a bit high, and we recommend you evaluate your expenses and come up with a budget to help you save money for a rainy day. If you have any debt, try clearing it as soon as possible to increase your credit score.
A credit card with a good score can come in handy when the financial situation becomes challenging. Our United Community VISA Rewards Credit Card is one of the best, as it has no annual fee, and you get a low APR of 8.99%. When you spend 1 dollar using your credit card, you earn one uChoose Rewards point that you can spend on gift cards, cash back, travel and merchandise. Also, did we mention that you can use it anywhere VISA is accepted? With a credit card, you will be able to withstand the effects of the recession without having to break a sweat.
Auto Loans
When money gets tight it might be time to take a good look at your current monthly payments. This is a good time to consider refinancing your auto loan. You may have a better credit score or interest rates may have dropped, which could mean reduced car payments and overall interest on the loan.
United Community offers some of the most flexible terms with very few restrictions. The process is fast and convenient. We will grant you a refinanced loan based on your credit history, collateral and ability to repay.
Personal Loans
Knowing that you have a reliable lender from whom you can get affordable personal loans can give you peace of mind when a recession comes. With personal loans you can cover medical expenses, get cash for emergencies, make tax payments, home or vehicle repairs, and much more.
Our Signature Loan gives you flexible terms and great fixed rates, so you can comfortably predict your payments. We work with you to develop a suitable loan that meets your needs and budget, so you don't have to worry about sorting out your expenses.
Debt Consolidation
One of the other ways you can comfortably prepare for a recession is by consolidating your debts. Debt consolidation loans can help you pay off all of your outstanding debts. Then, you can repay the debt consolidation loan in monthly, affordable installments.
You can streamline your bills since you know you have one loan/bill to pay, alleviating the stress of juggling several due dates and interest rates. Consolidating your debt will also give you more room in your budget. Your total monthly payment will have reduced drastically, and you will have more time to pay.
Our debt consolidation loans are flexible, and you enjoy great rates, empowering you to pay off your urgent loans.
Conclusion
Dealing with a recession can be scary, but it doesn't have to be. With proper preparation, you can get through the period unscathed. At United Community, we are well equipped to help you make effective financial decisions that will see you through a recession. Get in touch with us and start your journey to financial freedom.