If you went to college then there’s a good chance you have student loans. Whether your loans add up to a few thousand dollars or a couple of hundred thousand dollars, there are ways to pay off student loans fast.
How to Pay Off Student Loans Fast
Let me tell you, the day you make your last student loan payment will be the day you feel a huge weight lifted off your shoulders. That’s why, if it is possible, you want to do what you can to pay them off as quickly as you can.
This means you might have to make a few sacrifices now for the greater good of being debt free sooner, but in the long run, you’ll be glad you did. Here are several ways you can pay off student loans fast.
1.Pay extra each month – I know what you’re thinking. You think your loan payments are high enough already! I’m sure they are, but if you can add even a small amount each month it will really help.
Sure, an extra hundred or two hundred dollars a month would really make a major dent, but if you can’t afford that, don’t throw your hands up and give up. Even an extra $25 dollars a month will help. Start this month and set aside money each week to add to your loan payment. You’ll be amazed how much it helps when this extra month is going to the principal and not the interest.
2. Pay twice a month – Okay, you’ve done what you can, but you can’t come up with even an extra dime to add to your monthly payments. Hey, I’ve been there and done that! There’s still a way to make a difference and that’s by paying twice a month instead of once.
You won’t actually be paying anymore each month, but when you pay every two weeks, you’ll end up paying an extra payment each year. That extra payment will go directly to paying off the principal
3. Apply your raises – If you were lucky enough to get a good job when you graduated college, chances are you will get a raise each year. When you do, add that amount to your loan payments instead of spending it on something else.
Also, if you get a bonus at work, instead of taking a trip or spending it on something else, apply the whole amount to your loan. This is one easy way to pay off student loans fast as you won’t miss the money because you never actually had it in the first place.
4. Consider consolidating your loans – If you haven’t already, you should consider consolidating your loans if you have more than one. Once they are consolidated, you’ll only have one payment each month and there’s a good chance your interest rate will be lowered.
This alone will help you pay off your loans much faster.
5. Take on a side hustle – I know you’re already busy working a full-time job and trying to have a life, but you should really consider picking up a side hustle. The options are endless, and many you can do from home.
Just think, even making an extra $500 dollars each month to add to your student loan payments will really help you pay off student loans fast.
6. Stay clear of repayment programs – Repayment programs are great if you are having a hard time making your loan payments, but if you aren’t, you should stay clear. The whole point of these programs is to allow people to make smaller payments.
That’s great if you have no other choice, but in the long run, it will take you much longer to pay back the loan.
The truth of the matter is, you need to do what you can to get these loans paid off as quickly as possible. Give up a little fun today for a great deal of freedom tomorrow. Your future self will thank you.
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