If you’re one of many Americans carrying the burden of student loans, you’re probably wondering what extra things you can do in your life to pay off that debt as quickly as possible. Your debt can accumulate rapidly, with recent increases in student loan interest rates, and destroy the credit score if you don’t have a strategy in place to pay your monthly bills on time. Below are some great tips to help eradicate your student loan debt.
Be as Frugal as Possible
When people graduate from college they often move into an apartment that they have to furnish and don’t know how to manage the money they receive from their first job. Recent studies suggest that graduates are staying at home longer than before. Having an income with no expenses can help you pay off your debt within a couple years, giving you the freedom and money to afford your own place. Taking on a car payment is another huge financial liability. You can either use public transportation or get a used vehicle for transportation.
Examine your student loan debt statement and pay at least twice the minimum payment each month. This helps to reduce the principal balance and interest fees.
If you have multiple student loans then debt consolidation loans can help to reduce the debt. The process allows borrowers to consolidate all of your loans into one monthly payment at a lower interest rate. It reduces interest and can help you pay down your student loan debt quickly.
There are many state and federal programs that allow people to have most, and sometimes all of their student loan debt wiped away if they make certain commitments. Become a teacher, joining the armed services, or working in the public service sector are prime examples of programs offered by the federal government. This is a win-win situation for you because you can be debt free, have a stable job, and help others.
Finding a full-time job right out of school can be difficult. Working two jobs is a great way to pay down student debt quickly. Devote all of the proceeds from the second job to paying down your student loan debt. Making even $200 a week for one year equals $9,600 per year which means in 5 ½ years the whole debt could be erased.
Many people use their IRS tax refunds or bonuses at work to fund their vacations or to go on a lavish shopping spree. Use any extra money to pay down your student loan debt instead. If you keep it in a savings account and pay it annually, over time the interest will also help pay off your student debt quickly.