{"id":390757,"date":"2026-04-21T17:26:08","date_gmt":"2026-04-21T17:26:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/390757\/"},"modified":"2026-04-21T17:26:08","modified_gmt":"2026-04-21T17:26:08","slug":"the-best-18-tools-and-strategies-for-recession-proofing-your-finances","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/390757\/","title":{"rendered":"The Best 18 Tools and Strategies for Recession-proofing Your Finances"},"content":{"rendered":"

The Iran war<\/a> has shaken the world economy by disrupting energy production and shipping, as the key chokepoint, the Strait of Hormuz, remains blockaded. The resulting volatility has raised the possibility of a global recession, the International Monetary Fund warned in a recently released report.<\/p>\n

Even if the conflict is short-lived, the world will see the damage, per the report<\/a>. The IMF expects, in the best-case scenario, that global growth will fall to 3.1% this year from 3.4% in 2025. That’s down from the 3.3% the IMF predicted in January, before the war began.<\/p>\n

As for the pessimist view regarding the closure of the Strait of Hormuz, Citadel CEO Ken Griffin recently offered a chilling take: “Let’s assume it’s shut down for the next six to 12 months,” said Griffin at the Semafor World Economy<\/a> event earlier this month. “The world’s going to end up in a recession. There’s no way to avoid that.”<\/p>\n

There’s nothing you can do to stop a recession, but there are ways to prepare your finances by trimming costs\u2014even on necessary spending\u2014and finding extra money. CNBC Select outlines the best strategies and tools for preparing your finances. <\/p>\n

We want to hear your story<\/p>\n

Are you living paycheck to paycheck, or do you have a financial success you’re comfortable sharing with a reporter? Please fill out this quick form<\/a>.<\/p>\n

The best tools and strategies for recession-proofing your financesHow to cut costs on essentials<\/p>\n

Fifty-six percent of American adults said everyday life is less affordable than a year ago, according to CNBC and SurveyMonkey’s Quarterly Affordability Survey<\/a>. One way to alleviate this pain is to look for lower costs on necessities and essential expenses.\u00a0<\/p>\n

For example, investigate whether you can find a better car insurance rate. Prices for premiums have jumped 18%<\/a> between this year and 2025, according to the car insurance comparison site The Zebra. While most states require some level of car insurance for people to legally drive, you may be able to find a better deal by comparing rates.\u00a0<\/p>\n

CNBC Select found Jerry<\/a>, an AI-powered insurance shopping tool, was helpful for comparing quotes across several national companies. Users enter their personal information, such as credit scores and details about their vehicle, and Jerry spotlights inexpensive plans.\u00a0<\/p>\n

However, the platform focuses on national insurers, which may be more expensive than their regional or smaller counterparts. <\/p>\n

Jerry.ai<\/a>Highlights<\/p>\n

Jerry is an AI tool that allows drivers to compare auto insurance policies from dozens of insurers in minutes. You’ll need to provide personal information, including your name, address, phone number and vehicle information, but it gives you estimated rates from several insurers. <\/p>\n

Availability<\/p>\n

Jerry is a licensed insurance agency in\u00a0all 50 U.S. states\u00a0and Washington, D.C.\u00a0<\/p>\n

ProsReduces the comparison shopping process to minutes, not hours Compares potential rates from dozens of insurers in one place ConsRequires downloading the mobile app to see rates <\/p>\n

Read more: These two AI-powered insurance shopping tools are worth a try<\/a><\/p>\n

If you’re paying high interest rates on your credit card each month, consider moving your debt to a balance transfer card with no interest. CNBC Select recommends two for their 0% introductory APR.\u00a0<\/p>\n

The U.S. Bank Shield\u2122 Visa\u00ae Card<\/a> is well-suited for people seeking an extended repayment timeline. The card offers a 0% introductory APR<\/a> on purchases and balance transfers for 21 billing cycles. After that, there’s a 16.99%\u201327.99% variable APR. While there is a $0 annual fee, the U.S Bank Shield card charges a 5% fee on balance transfers, which is higher than the typical 3%.<\/p>\n

Information about the U.S. Bank Shield\u2122 Visa\u00ae Card has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.<\/p>\n

Information about the U.S. Bank Shield\u2122 Visa\u00ae Card has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.<\/p>\n

Good to Excellent670\u2013850<\/p>\n

*See rates and fees, terms apply.<\/p>\n

Pros & consBest-in-class intro-APR offers for purchases and balance transfersNo annual feeAnnual statement creditCell phone protectionRewards limited to eligible travel purchases made through the U.S. Bank Rewards CenterNo welcome bonusHas a foreign transaction feeNo intro balance transfer fee<\/p>\n

The Citi Double Cash\u00ae Card<\/a> offers a 0% intro APR for 18 months on balance transfers, followed by a variable APR of 17.49%\u201327.49%. You’ll pay a fee of $5 or 3% of the balance transferred, whichever amount is greater, but you’ll also earn 2% cash back on purchases: 1% when you buy something and 1% when you pay the monthly credit card bill.<\/p>\n

Spotlight<\/p>\n

Receive a 0% intro APR for 18 months on balance transfers.<\/p>\n

Good to Excellent670\u2013850<\/p>\n

Our expert take<\/p>\n

The Citi Double Cash\u00ae Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.<\/p>\n

Pros & consLong intro-APR for balance transfersHigh flat-rate cash-back rewards structureNo annual feeHas a foreign transaction feeIntro APR doesn’t apply to purchasesMore detailsHighlights<\/p>\n

Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.<\/p>\n

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou\u00ae Points, which can be redeemed for $200 cash back.Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% – 27.49%, based on your creditworthiness.Balance Transfers do not earn cash back. Intro APR does not apply to purchases.If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).Balance transfer fee<\/p>\n

There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.<\/p>\n

Foreign transaction feeLoan options for when you’re in a pinch<\/p>\n

If you’re facing a large, unexpected expense, a personal loan can help. Personal loans, which are often unsecured, may not require collateral but you’ll face higher interest rates than secured loans, which are collateralized.\u00a0<\/p>\n

We like Upstart<\/a> for its accessibility: it considers applicants with no credit score or thin credit histories. You can borrow between $1,000 and $75,000 with APRs ranging from 6.5% to 35.99%, depending on the applicant’s credit, income and work experience. Additionally, most loans are funded by the next business day.\u00a0<\/p>\n

Spotlight<\/p>\n

Designed with applicants with low or no credit score in mind. <\/p>\n

Upstart considers applicants with insufficient credit history and, at the very minimum, a credit score as low as 300. Though, it’s recommended that you apply with a co-signer if you fall into one of these camps.<\/p>\n

See if you’re pre-approved for a personal loan offer.<\/a><\/p>\n

Annual Percentage Rate (APR)<\/p>\n

Our expert take<\/p>\n

Upstart offers accessible personal loans for people with fair or average credit.<\/p>\n

Pros & consAccept applicants with low or no credit No early payoff feesMost loans funded the next business dayHigh late feesOrigination fee of 0% to 10% of the target amount$10 fee for paper copies of loan agreement<\/p>\n

If you’re focused on keeping costs low, consider LightStream<\/a>\u2014it doesn’t charge origination fees, late payment fees or prepayment penalties. Loans range from $5,000 to $100,000, plus there’s a 0.50% discount for signing up for autopay. The APR ranges from 6.49% to 24.89% if customers sign up for autopay before the loan is funded, otherwise, rates are 0.50% higher.\u00a0\u00a0<\/p>\n

Spotlight<\/p>\n

Best if you need a longer time horizon to pay off your loan.<\/p>\n

On one end, LightStream’s personal loan terms can be as long as 240 months (for certain loan purposes), which gives you way more flexibility for fitting a loan payment into your budget (especially if you’re borrowing a larger amount of money).<\/p>\n

See if you’re pre-approved for a personal loan offer.<\/a><\/p>\n

Good to Excellent670\u2013850<\/p>\n

24 to 240 months dependent on loan purpose. <\/p>\n

Annual Percentage Rate (APR)<\/p>\n

6.49% – 24.89%* APR with AutoPay. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Excellent credit required for lowest rate. Rates vary by loan purpose.<\/p>\n

Our expert take<\/p>\n

LightStream Personal Loans offer low APRs, no fees and the ability to apply online<\/p>\n

Pros & consSame-day funding available through ACH or wire transfer (conditions apply)Loan amounts up to $100,000No origination fees, no early payoff fees, no late feesLightStream plants a tree for every loanRequires several years of credit historyNo option to pay your creditors directlyNot available for student loans or business loansNo option for pre-approval on website (but pre-qualification is available on some third-party lending platforms)Where to find extra money<\/p>\n

If you’re looking to bring in extra cash, consider renting things you already own. For example, rent access to your backyard swimming pool with Swimply<\/a>, a car you don’t use often via Turo<\/a>, or your home on Airbnb<\/a>.\u00a0<\/p>\n

If you don’t have or can’t spare one of the above, look at what miscellaneous items are in your possession. CNBC Select recommends using Hygglo<\/a> to rent construction equipment, electronics, garden tools, party items and sports gear, among other categories. However, the platform charges a 20% commission from the rental, which goes toward covering insurance and guarantees, customer support and user verification. <\/p>\n

Hygglo<\/a>Fees<\/p>\n

Collects a 20% commission from rental fee <\/p>\n

Availability<\/p>\n

The app is available in both the App Store (for iOS) and on Google Play (for Android); there’s also a web version<\/p>\n

ProsOffers Hygglo Care, which is essentially damage, loss and theft protection for lenders listing their items on the platformLets you rent out a variety of itemsVerifies borrower’s identity App and web version available ConsTakes a 20% commission from your rental feeDepop<\/a>Fees<\/p>\n

For U.S. sellers, the standard transaction fee for Depop Payments is 3.3% + $0.45<\/p>\n

Shipping costs<\/p>\n

Either the buyer or seller can cover the cost of shipping for\u00a0shipping labels generated by Depop \u2014 costs depend on the weight and dimensions of your package. U.S. sellers can also choose to arrange their own shipping <\/p>\n

Availability<\/p>\n

The app is available in both the App Store (for iOS) and on Google Play (for Android); there’s also a web version, but the app is more functional.<\/p>\n

How do you get paid?<\/p>\n

Earnings from your sales are all paid into your Depop Balance. These earnings are then automatically transferred to your connected bank account.<\/p>\n

ProsYou only have to pay fees when you sell an item (no listing fees)You can post the listings and manage your shop all from your phoneOffers a social feed for boosted visibilityConsDoes charge a feeYou can’t use it for in-person deliveries or ordersFunds are held until delivery confirmation or the waiting period elapsesMercari<\/a>Fees<\/p>\n

Sellers pay a 10% fee for each item that’s sold. There’s also a payment processing fee of 2.9% plus $0.50. There’s also a $2 fee for each direct deposit transfer under the minimum of $10 or a deposit rejected by the financial institution. Each Instant Pay transfer is $3.<\/p>\n

Shipping costs<\/p>\n

Either the buyer or seller can cover the cost of shipping;\u00a0shipping labels are generated by Mercari and costs depend on the weight and dimensions of your package.<\/p>\n

Availability<\/p>\n

Mercari has an app that’s available in both the App Store (for iOS) and on Google Play (for Android), and you can also list and shop via its website.<\/p>\n

How do you get paid?<\/p>\n

After the transaction has been completed, the payment will show up on your Mercari balance. You can either have the money directly deposited into your bank account.<\/p>\n

ProsYou only have to pay fees when you sell an item (no listing fees)People who want to sell items locally can use Mercari Local You can post the listings and manage your shop all from your phoneConsMercari take a higher commission fee (10%) than some other resale platformsThere’s a $2 if your direct deposit is less than $10Bigger moves to make<\/p>\n

To trim costs, you might consider refinancing your mortgage. While rates have jumped since the start of the Iran war, they’re still lower than the 8% homebuyers faced in 2023. CNBC Select recommends two lenders for their availability and low rates.\u00a0<\/p>\n

For homeowners who want a lower rate as soon as possible, consider Rocket Mortgage<\/a>. Its average closing time for refinancing is 21 days \u2014 half the national average.<\/p>\n

Rocket Mortgage Refinance<\/a>Mortgage types<\/p>\n

Conventional, FHA, VA, HomeReady, Home Possible, Rocket ONE+, jumbo, refinancing, VA Interest Rate Reduction Refinance Loan (IRRRL), home equity loan<\/p>\n

Terms<\/p>\n

8 to 29 years for fixed-rate term<\/p>\n

Credit score requirement<\/p>\n

580 for cash-out, rate-and-term, FHA or VA IRRRL<\/p>\n

Home equity requirementAvailability<\/p>\n

Rocket Mortgage offers refinancing in all 50 U.S. states and Washington, D.C.<\/p>\n

ProsCan refinance second home or investment propertyPrequalification available in minutesAllows borrowers to cash out 100% of their home’s equityConsDoesn’t offer USDA loans, HELOCs, construction loansNo physical locationsHigher-than-average origination fees<\/p>\n

Better<\/a> boasts lower interest rates than many competitors and allows customers to roll lenders’ fees into the loan, so you don’t have to pay them upfront. However, check the math to ensure your rate is low enough so that adding the fees doesn’t result in a higher monthly payment.\u00a0<\/p>\n

Better Mortgage<\/a>Annual Percentage Rate (APR)<\/p>\n

Apply online for personalized rates<\/p>\n

Types of loans<\/p>\n

Conventional, FHA, VA, jumbo<\/p>\n

TermsMinimum credit scoreMinimum down payment<\/p>\n

5% for conventional loans, 3.5% for FHA loans, 0% for VA loans, 10.01% for jumbo loan<\/p>\n

ProsNo application fee or underwriting feePreapproval in as little as three minutes$100 rate-match guarantee 24\/7 customer supportConsDoesn’t offer USDA loansHELOC requires draw of at least 75% of your home’s valueNo physical branches<\/p>\n

Read more: The best lenders for refinancing your mortgage<\/a><\/p>\n

Consider a home equity line of credit (HELOC)<\/a> if you need to tap your home’s value with a revolving line of credit for renovations, college tuition or other expenses. HELOCs offer lower interest rates than personal loans and more time to repay than credit cards.\u00a0<\/p>\n

CNBC Select recommends Bank of America<\/a>, among several lenders, as it doesn’t charge application fees, account fees or closing costs. What’s more, the wide scope of Bank of America’s physical locations can help if you prefer to start this process in-person.\u00a0<\/p>\n

Bank of America HELOC<\/a>Loan typesMinimum credit scoreMaximum loan-to-valueHELOC draw amountHELOC draw periodRepayment periodFees<\/p>\n

No application fees,\u00a0annual fees or closing costs<\/p>\n

Availability<\/p>\n

Bank of America offers HELOCs in all 50 states and Washington, D.C.<\/p>\n

ProsAvailable in all 50 statesLower credit score requirement lends up to $1 millionNo application fees,\u00a0annual fees or closing costs on HELOCConsDoesn’t offer home equity loansHave to complete closing at a branch<\/p>\n

Read more: Best home equity lines of credit (HELOC) lenders<\/a><\/p>\n

If you have an adjustable-rate mortgage and you’re facing the end of the fixed-rate portion of your term, you should consider refinancing to a fixed-rate term. Doing so will help you ensure your monthly mortgage payment remains stable and will eliminate the risk of a sharp uptick in your rate \u2014 which could result in higher costs each month and over the life of the loan.<\/p>\n

If you want to refinance to a fixed-rate mortgage as soon as possible but don’t have the extra cash on hand to pay for closing costs, there are mortgage lenders, like Better<\/a>, that let you wrap your closing costs into the loan so you won’t have to pay anything up front.\u00a0<\/p>\n

If you’re looking to get your refinance done as soon as possible, Rocket Mortgage<\/a> is a great option. <\/p>\n

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Why trust CNBC Select?<\/p>\n

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every financial product review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.<\/p>\n

Catch up on CNBC Select’s in-depth coverage of\u00a0credit cards<\/a>,\u00a0banking<\/a>\u00a0and\u00a0money<\/a>, and follow us on\u00a0TikTok<\/a>,\u00a0Facebook<\/a>,\u00a0Instagram<\/a>\u00a0and\u00a0Twitter<\/a>\u00a0to stay up to date.<\/p>\n

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff\u2019s alone, and have not been reviewed, approved or otherwise endorsed by any third party.<\/p>\n