College graduation is an exciting day, but statistics show that most college graduates are weighed down with student loan debt upon graduation.
Not only can these loans can be tricky to pay off, but they also prevent graduates from investing and saving money for their future until the debt is gone. So how can you pay off student loan debt faster?
Make Bigger Payments
The fastest way to get rid of the student loan debt, if you are able to, is to pay more than your minimum payment amount each month. There are a few ways you can do this: either pay twice a month instead of once, or add extra money to your minimum monthly payment.
Paying off your loan in this way will cut off years of payments and thousands of dollars in interest!
Make a Budget and a Plan
Unwritten goals are just dreams, as the saying goes. If you have a plan in place and a goal of when your debt will be paid off, then you are more likely to stick with it and maybe even be motivated to pay it off faster.
This plan requires a basic budget as well so that you know where your money is going. By following your budget you will be sure your student loan payments aren’t being spent on say, groceries instead.
Automatic Payments
Along those same lines, you may want to set up a separate bank account just for this purpose. You can set up an auto payment so that portions of your earnings are deposited into the account regularly. This ensures that that money isn’t spent on other things.
Live On Less Than You Earn
The biggest challenge in student loan repayment is that your spending needs increase after college. With housing, a growing family and other expenses, money can get tight. Avoid the temptation to go into debt for unnecessary things like the newest phone or TV, or a brand new car.
By living frugally for a short period of time, you will reap the benefits faster and be able to afford more luxuries in the future.
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