How to Repay Student Loans Faster
You must be glad that finally your education is over but perhaps a bit fraught due the student loan you had availed off! It’s not difficult to payback those student loans quickly as long as you are willing to make a few sacrifices and plan your expenses realistically.
You should understand that the faster you pay your debt, the more you save by way of interest due on those loans and that can be substantial amount. Moreover, clearing off all the debts brings in a sense of relief.
Here are some tips to help you payback your loan faster:
1. Make an accurate assessment of all student loans you availed. Write down the amount due against each loan and also its rate of interest. It also helps to put down the minimum amount to be paid against each.
2. Calculate the amount of student loans you could pay right now. Next, arrive at the amount you’ll be left with after having paid the minimum amount due against each loan. Whatever is the balance should go towards the loan carrying the maximum rate of interest.
3. Remember the old adage “Money saved is money earned!” So, think of ways that help saving money. You’ll definitely need to make small sacrifices on the way. For instance, start preparing your morning coffee at home or cook dinner at home a couple of times every week, rather than eating out regularly. All these may seem petty expenses but they add up to substantial amounts finally. All the money thus saved can go to liquidate your debt to some extent. It may be bit difficult initially, but you’ll be glad that you did it finally! If you really want to clear off that debt quickly, you should be prepared to make some sacrifices.
4. Make some additional money to be used for paying back the student loans with maximum rate of interest. Dispose of all your personal belongings that you have not used for quite some time. Old pieces of furniture or clothes which won’t fit you anymore are some such things, and fortunately you have eBay and Craigslist to make use of.
Recognize your skills and use those for making some extra bucks. You could be working as a bartender or a photographer at weddings and earn some extra money. Else, you may babysit or mow the lawns of your neighbors. You would realize it’s worth doing any such thing to earn some extra dollars to pay back loans quickly and feel relieved at the end.
5. Having thus paid all your extra earning towards clearing debt carrying maximum interest and cleared that student loan, you may keep working to make extra money to clear off the next debt with maximum interest and so on till you have cleared all your debts.