This crunch will not happen fast. It will happen very slowly. Doomsayers like to say we will be in a depression by the end of the year, etc, etc.  First, credit dries up. Second, creditors in search of liquidity, raise rates on consumers. Third, getting new credit will become very difficult.  A major recession will last years. Pay off your debt now, while its cheap. Then use your cash to invest in hard assets that wont devalue.