Best Personal Finance Strategies For 2021

As of February 2020, the student loan debt crisis is at $1.6 trillion, with an estimated 45 million
borrowers. The average monthly student loan payment is about $400, but it could be higher
depending on the degree you have. There are much better ways you can be spending that
money, such as car payments, investing in your child’s college fund, or saving for a down
payment on a house.

But navigating and escaping debt is tricky. What works best for your friend may not work for
you. However, there are some things everyone can try to reduce their debt. What many people
don’t know is that there are people you can turn to for help. McCarthy Law is a law firm that
specializes in resolving student loan debt.

Make a Plan

A financial plan is key to helping you reach your financial goals. If you don’t trust yourself to pay
your bills on time, put a monthly reminder in your calendar to pay your bills. You should also
check the interest rates on your loans.

The first loan you pay off should always be the one with the highest interest rate.

The longer you wait to pay it off, the more interest will accrue.

You should also set long- and short-term goals for yourself. Goals will help prioritize your
finances. Building an emergency fund that can cover three months’ worth of basic expenses or
fully paying off your credit cards each month are good short-term goals.

For long-term goals, think big picture, like buying a house or retiring early.

Learn to Budget

Budgeting is vital in paying off your loans and other debt. A great way to budget is the 50/30/20
model. 50% of your salary should go toward necessities, such as rent, groceries, and your car
payment, while 30% of your budget can go toward those things like eating out or streaming
subscriptions. You should save the last 20% for building your savings.

However, if you have student loans or other debt, you need to put some of your salary toward
paying them off. A good rule of thumb is allocating about 10%–20% of your salary to paying off
your loans. This may mean you have to cut back on streaming services or eating out, but you’ll
be in a better financial position when your loans are paid off.

If you have extra money one month, consider paying more on your student loan. Paying more will only benefit you in the long
run.

If you’re continually overspending on your credit or debit card, consider only using cash. A cash-only lifestyle will help you not overspend. It also helps visualize how much money you have at
any given time.

How to Keep Debt Low

There are a few things you can do to keep your debt low. If you have a lot of debt, paying off
smaller debt can give you the confidence needed to tackle larger bills. Paying off a store credit
card before chipping away at your student loan is a good example. Again, keep in mind that you
should still work on paying off the loan with the highest interest first.

If you’re still in school or going back, fill out the FAFSA. Even if you don’t think you’ll receive any
money, filling out a form will not hurt you or your credit score. It’s relatively easy to complete,
and you may even receive money that doesn’t have to be paid back.

Shop Smart

When shopping, it’s easy to go overboard. One minute you’re browsing with an empty cart. Next
thing you know, you’re at check-out with a cart full of merchandise. It’s essential to have smart
shopping habits. Over the past few months, more stores started offering curbside pick up or buy
online, pick up in store. These two methods will ensure you won’t get carried away in the store.

You should also consider the practicality of what you’re buying. It may be tempting to buy the
$30 trendy shirt, but chances are the $10 shirt is just as good. Additionally, it’s a good idea to
shop by yourself. Friends and family may convince you that you “need” something you probably
don’t.

How McCarthy Law Can Help You with Your Student Loans

Our attorneys focus on representing people who have private student loan debt and have years
of experience helping students consolidate or refinance their loans.

Student Loan Refinancing

Student loan refinancing gives some power back to borrowers. If you’re not happy with your
interest rate, you can refinance your loans for a potentially lower one.

In a nutshell, student loan refinancing is when a private lender pays off your existing student
loans and gives you a new loan with new terms. For example, if you have three student loans
across different banks or agencies, a lender will pay the remaining balance on them. Instead of
owing three different groups money, you will only owe one entity.

Refinancing your student loans is a great way to renegotiate your loan’s terms, especially the
interest rate. You’ll have more power in negotiations if your credit score has improved, as well.

There are some risks to keep in mind when refinancing your loans. If interest rates are high, you
may end up paying more after a refinance than you do now. Before refinancing your loans, you
should always speak with a student loan attorney.

We Can Help Settle Your Loan Debt

Under our student loan settlement program, one of our attorneys will contact your student loan
lenders and negotiate to reduce the interest and principal lender claims owed. At the end of a
successful settlement, you’ll only pay a fraction of the original balance because the lender
forgave the rest. All of this can be done without filing for bankruptcy.

Our student loan negotiation program is for privately issued student loans. Private loans are
typically administered through banks such as Citigroup or Chase Bank. If you’re unsure what
type of loans you have, you can contact us for a free evaluation.

Why Hire a Student Loan Attorney?

There are some companies out there that claim they can assist with your student loans. These
companies are often expensive and do work you can accomplish yourself with a bit of research
and patience. Student loan attorneys also charge a fee, but they will take care of things that you
wouldn’t be able to manage on your own at no cost. When you hire a student loan attorney, you
can expect them to:

• Give you legal advice regarding your student loans and debt
• Communicate with lenders and debt collectors
• Protect you from aggressive debt collectors or agencies
• Prepare for and represent you in court
• Handle credit disputes

Overall, a student loan lawyer will be your advocate, and provide essential services to settle
your debt. Student loan attorneys will also protect you against student loan lenders like Navient
or Chase.

Contact the Debt Lawyers at McCarthy Law Today

It’s important not to let the stress of debt overwhelm you. The experienced attorneys at
McCarthy Law can help you get your finances back on track. One of our Engagement Team
Members will thoroughly review your case. Once we have a full understanding of your case, we
can present you with the best options.

Here at McCarthy Law, we believe that finances are a very personal matter that should be
discussed with an experienced attorney. Everyone’s situation is different, so call (877) 205-8742
for a free phone consultation. Tell us about your unique situation, and we’ll tell you what your
options are for financial relief.

By offering a free consultation and a flat fee, McCarthy Law supports its clients by fighting and
negotiating even the largest loans. Contact us today to learn more about our services!

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