Best Personal Finance Strategies For 2021

financial strategies

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

financial strategy 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.

👉Join 10,000+ Subscribers

Learn helpful tips to get out of debt and build wealth!

    We won't send you spam. Unsubscribe at any time.

    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

    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

    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

    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

    settle loan debt financial strategy

    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!