How Can I Pay Off Student Loans FAST?
Debt is an on overbearing stress that is relentless – it never gives up. The best thing you can do to beat debt rather than debt beating you is to pay it off as quickly as possible. Getting debts paid off is a gratifying feeling, and one that is not common in today’s age. A standard repayment plan is 10 years in length, so you are set up for a tenth of a century to pay off your student loan debts.
Steps to Take to Get Rid of Your Student Loans Faster
- Make larger payments than your minimum.
It sounds obvious. But this is one method to speed up the process of paying off your loans for good as well as chipping away at interest so you don’t pay as much in the long run. Just think – if you are on the standard repayment plan of 10 years and your payment is $150.00 let’s say. If you paid $300 (assuming you could swing it and it was affordable for you) — you would have everything paid off in FIVE years! That is the power of paying more than the expected amount per month. Don’t stress yourself out if you can’t afford double, that was just an example. Even an extra $10, $20, or $30 will still chip the principle down. Do what you can.
- Lower your term
If you are on the Income-Based, Income-Contingent, Extended Graduated plan etc. and not on the Standard – switch them to the Standard plan and this would lower your term down potentially 15 years! that’s a whole lot of savings if you can swing that. The Income-based / Contingent / Extended Graduated plans are for those who can’t afford the Standard monthly payment; so if you can – do it. In turn, this would be paying a lot less interest, paying the loans off in a fraction of the time, and puts more money in your pocket in the long run.
First – figure out what your household brings in NET wise – aka – your take-home pay. Ideally, your expenses will be less than what you’re paid monthly. Next is your expenses: simply add up all your expenses per month (I like to include all expenses like “fun”, “groceries”, “fuel”). The difference – you could always put towards your student loans to help out with points 1 and 2. Now, I don’t necessarily recommend putting all your monthly savings towards your student loan payments as it is more important to have an “emergency fund” for life’s issues. But even if you can put 1/5 of your monthly savings towards your student loans – that will chip down the principle. If your expenses outweigh your income – you can always try to cut expenses. Spend less on food per month and put it towards your loans etc. Scrap two of the nineteen subscriptions you have and you guessed it: put it towards your debt.
As you can see, these are just a few of multiple options you can look into to pay off your student loans faster. It’s a marathon so do what you can, and in time – they will get paid off one way or another!
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