Avoid becoming a cosigner
Even when there is no risk of recession, cosigning a loan is one of the riskiest things you can do. If the person taking the loan fails to make the scheduled payments, you — the cosigner — will be asked to make those payments instead.
The risks associated with cosigning are much greater during an economic downturn, since the individual taking out the loan has an increased chance of losing their job. Worse, you may end up unemployed as well. If you must cosign a loan for a close friend or family member, set aside some money as a safety cushion.
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