The Best 18 Tools and Strategies for Recession-proofing Your Finances

The Iran war 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.

Even if the conflict is short-lived, the world will see the damage, per the report. 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.

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 event earlier this month. “The world’s going to end up in a recession. There’s no way to avoid that.”

There’s nothing you can do to stop a recession, but there are ways to prepare your finances by trimming costs—even on necessary spending—and finding extra money. CNBC Select outlines the best strategies and tools for preparing your finances.

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. One way to alleviate this pain is to look for lower costs on necessities and essential expenses. 

For example, investigate whether you can find a better car insurance rate. Prices for premiums have jumped 18% 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. 

CNBC Select found Jerry, 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. 

However, the platform focuses on national insurers, which may be more expensive than their regional or smaller counterparts.

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. 

The U.S. Bank Shield™ Visa® Card is well-suited for people seeking an extended repayment timeline. The card offers a 0% introductory APR on purchases and balance transfers for 21 billing cycles. After that, there’s a 16.99%–27.99% 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%.

The Citi Double Cash® Card offers a 0% intro APR for 18 months on balance transfers, followed by a variable APR of 17.49%–27.49%. 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.

We like Upstart 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. 

If you’re focused on keeping costs low, consider LightStream—it 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.  

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 car you don’t use often via Turo, or your home on Airbnb. 

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 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.

For homeowners who want a lower rate as soon as possible, consider Rocket Mortgage. Its average closing time for refinancing is 21 days — half the national average.

Better 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. 

Consider a home equity line of credit (HELOC) 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. 

CNBC Select recommends Bank of America, 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. 

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 — which could result in higher costs each month and over the life of the loan.

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, that let you wrap your closing costs into the loan so you won’t have to pay anything up front. 

If you’re looking to get your refinance done as soon as possible, Rocket Mortgage is a great option.

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