The burden of student loan debt can prevent you from buying a home, starting your dream career, or even settling down with a family. Here are a few tips to get those student loans paid off faster so you can get started toward your goals sooner.
1. Get a second job before settling down.
If you have proven your ability to comfortably live off of your first job, the income from a second job can be put directly into your student loans. Continue making the monthly payment that you have been, then add your second income on top of that to accelerate the process.
2. Refinance your student loans.
This is where strong credit can really go to work for you and benefit your repayment efforts. There are a few very competitive options for refinancing federal and private student loans, enrolling in automatic payments could provide you new rates as low as 2%! Refinancing at a lower rate can reduce your minimum payment, keep making your original payment or more and you will pay off your debt faster.
3. Reconsider big-ticket purchases.
One of the best things about being a graduated adult is spending like one. Vacations, nice dinners, new cars and apartments are all fun, but if they are taking up half of your monthly budget, it will be wise to cut back and put more money toward your student loans.
4. Live at home with your parents.
Yes, we said it, live at home with your parents. If this is an option, you can really improve your student loan situation. Find out what you could be paying for rent in an apartment, then add this amount to your monthly student loan payment or split it and invest part of the extra money.
5. Write a detailed budget with a loan payment plan.
Tracking your money as it comes in and knowing where it will go may give you some peace of mind. Your budget needs to be detailed so you can find any black holes where your money might be going. Making sure your loans are accounted for and adding any additional funds to them will help you pay your loans, and be a smarter spender.
Put these 5 tips together and you will surely be paying your loans off much quicker. Don’t be another college grad that goes delinquent on their student loans. Your debt may be debilitating now, but collections, judgments, and bad credit can make your situation worse.