While experts are discussing whether a recession will come or not, most are already convinced that we are heading for a downturn, according to a recent survey from MagnifyMoney.
High inflation is one of the biggest risk factors that makes people think an economic downturn is on the way, along with high housing and rental prices and rising interest rates, says CNBC.
Most Americans – 70 percent – already believe an economic downturn is on the way, according to the survey.
A recession is normally defined as a fall in a country’s gross domestic product for two or more consecutive quarters.
This is how they prepare
According to the survey, there were several measures taken by the private individuals. 62 percent wanted to cut spending. Furthermore, 36 per cent would take measures to strengthen their income, either in the form of side jobs, increased job performance or adjustments in the investment portfolio.
One in four respondents in the survey reported paying down debt as a way to prepare for a financial downturn.
As the Federal Reserve raises interest rates, you may want to consider their options for controlling their personal interest rates on their debt, says Matt Schulz, owner of MagnifyMoney.
Some bright spots
Despite great fear, the US economy has some bright spots. Among other things, a strong labor market and rising wages. But despite this, the high prices have increased Americans’ sense of economic insecurity, says Schulz.
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