Stuck with your student loan? Well, paying off a student loan is a challenge for many and definitely not the best feeling in the world. Especially, when you see your entire salary going toward the repayment of hefty education loans (coupled with high interest rates) that you have taken during your student life.
But worry not! The best way to tackle this situation is to plan ahead and plan well. In this article, we will guide you through five sure shot ways that will help you repay your student loans faster. Let’s take a look.
#1: Take stock of your student loan amount and make a plan
Having a clear understanding of your student loans, the repayment amount, and interest rates will help you avoid unwanted surprises later. So, before you make a strategy to repay your student loan, find out the total principal amount remaining and its interest rate. Don’t forget to include your credit card in it. Make a list of all of your debt and then make a plan to pay it down as quickly as possible.
#2: Try to pay more than the minimum
This is one of the easiest ways to reduce your student loan amount. Simply try to add extra money to the monthly payment that you have set for yourself. Plan ahead, so that any surplus money that you have directly goes toward repaying your principal loan amount. Even if that comes down to $25 per month, it is still a good start to repay your student loans faster.
#3: Consider student loan reconsolidation
Refinancing and consolidating your student loans is one of the best ways to pay off your student loans faster. Refinancing your student loan decrease the interest rates and consolidates your different loan amounts into one monthly payment, making it easier for you to repay your student loan faster. Today, there are a number of student loan refinancing companies in the market that can help simplify the loan repayment process for you. Carefully check the interest rates and terms of each of these companies and make a best pick. For expert advice on student loan reconsolidation, call toll free.
#4: Trim your budget
Thinking of buying a bigger TV or a better car at your next pay raise? Well, hold your plans for a while and consider repaying your student loan first. Increase in the monthly budget is one of the main reasons why most students are unable to repay their student loans faster. So, identify areas where you can cut back on your spending and try to trim your monthly budget as much as possible. You may be surprised to know how much money you can actually save once you write everything down.
#5: Take advantage of loan forgiveness programs
Did you know that many jobs, especially teaching jobs, offer you forgiveness for some or all parts of your student loans? Well, this comes as an added bonus to the salary that you get for your services. See if your current job offers you some kind of forgiveness on your loan amount or try to find a job or a forgiveness program that works in your favor.
Though, for most people, repaying student loan debt is not quick and easy, these simple and effective strategies can help you stay on track, focus on your goals, and become debt-free sooner than possible.