Money is a significant stressor in many people’s lives. Student loan and credit card debt can feel overwhelming, even paralyzing. Here are some resources that can help.
Student loan debt
- Income-driven repayment plans
- Public service loan forgiveness
- Loan repayment assistance programs – available through employers, universities, state bar associations, and the John R. Justice Student Loan Repayment Program.
Start the process of tackling student loan debt by checking out the resources published by the Oregon New Lawyer Division. All three Oregon law schools offer a Loan Repayment Assistance Program (LRAP) for their recent graduates. If you attended law school out-of-state, check with your law school to see if they offer their own LRAP. You may also be eligible for the Oregon State Bar’s LRAP program.
Credit card debt
If you are struggling to chip away at your credit card debt, consider whether a balance transfer is right for you. In theory, a balance transfer credit card allows you swap out your high-rate card for a cheaper card, paying off your original balance. Nerdwallet recently published a list of the best balance transfer cards for 2018. Terms vary widely, so do your homework. But all in all, the Nerdwallet list seems to include some good deals:
- Discover – No annual fee, 0% interest on purchases for 6 months and 0% on balance transfers for 18 months, rewards rate 1.00%
- Citi Diamond – No annual fee, 0% on purchases for 12 months and 0% on balance transfers for 21 months
- Chase Freedom – No annual fee, 0% on purchases and balance transfers for 15 months, rewards rate 1.00%
For the pros and cons of pursuing a zero percent balance transfer, see this post.
Know your spending habits
Establish a system to track personal income and expenses. Free budget templates are available from Office 365, Mint, or these sources. Quicken Deluxe is another good solution: cheap, easy to use, and a great value.
Speaking of budgets, have one. Each month, compare your actual income and expenses to the amounts you projected. If you see yourself going astray, make a mid-year course correction.
Be ready to make tough decisions and a few sacrifices to cut back on spending.
Managing the stress
Money management isn’t easy, and being in debt is stressful. But you are not alone. If you don’t know where to start, reach out to the attorney counselors at the Oregon Attorney Assistance Program (OAAP). They are supportive and can point you in the right direction. Help is free and confidential: 503-226-1057 or toll-free in Oregon 800-321-6227.
All Rights Reserved 2018 Beverly Michaelis