4 Ways to Speed up the Process of Paying off Student Loans
The average student accrues several thousands of dollars in student debt when earning their degrees.
While most students work to pay off these loans as soon as they start working after college, these loans are often overwhelming, especially as the interest begins to grow.
Despite being faced with these growing loans as new graduates, there are a few strategies that former students can use to help pay off their debt faster. Read on for four ways to get through your student loans ASAP.
Refinance Your Student Loans
Graduates that have a steady income and good credit should consider refinancing their student loans.
Individuals that qualify can work with lenders to accept one private loan with lower interest rates instead of having multiple student loans.
With the new loan, you’ll be able to accept new loan terms that are shorter than the initial term.
While refinancing your student loans may increase the amount you pay each month, this will allow you to pay off your debt faster and cut down on the interest you accrue. Similarly, you’ll pay one bill instead of multiple ones.
Make Payments Biweekly
Making payments biweekly is another way to accelerate your loan repayment. By scheduling payments every two weeks instead of once a month, you’ll trick yourself into paying off debt faster.
“Student Debt is the Best Way To Postpone Your Future Financial Life”, John Williams – WhatIsA529Plan.com
Ultimately, you’ll make one extra payment every year, which will shave time off the repayment schedule and reduce the money you spend as a result of interest.
Sell Your Car
In addition to paying more on your student loans and refinancing your debt, consider making extra money in other ways.
Have you ever thought “Maybe I should sell my junk car?” when faced with yet another monthly payment of your student loans?
While you may be hesitant to sell your vehicle at first, doing so will free up a lot of cash in the long run.
If you can sell your car and use alternative means of transportation, you can use the money from the sale and the money you’d save from not paying for car insurance or gas to pay down more of your student loans.
Sign up for a Side Hustle
When trying to pay down your student loan debt quickly, increasing your income is another important way to be able to pay your debt off faster.
One of the best ways to increase your income is to take up a side hustle. Side hustles can include everything from taking on a part-time job, working as an online freelancer, or even starting your own company.
With an additional stream of income, whatever it may be, you’ll find you have more spending money to cut your loans down quickly.
While your student loans may seem insurmountable, with the proper strategies, you’ll be able to pay them off faster than you think.
By applying these four tips, you’ll find that it’s easier to pay off your loans regularly at a much faster pace.
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Category: Student Loans
