Money Matters Blog

Whether you’re currently a college student or have graduated and are ready to tackle your debt, there’s no better time than now to start paying off your loans. It’s not an easy job, but the feeling of being debt-free is unlike any other. Keep reading to learn the five steps to take towards getting rid of your student loans. 

1. Pay more than the minimum 

No matter how small the amount of added money each month is, paying more than the minimum is one of the best ways to drastically reduce your debt faster. Even if the most you can afford to stack on is $15, it will add up and you’ll be glad you did it. And chances are you won’t miss that $15 at the end of the month.

2. Create a debt payment plan

Making a plan will not only help you stay on track, but it will make you feel accomplished and more motivated to reach your goals. Map out how much you make each month, what expenses you have, how much you have to pay off in student loans and make a plan with a timeline. One tried and true strategy is to focus all of your extra money on your smallest loan, which is the fastest way to eliminate one monthly payment. Then redirect that loan’s monthly payment and anything extra to the next smallest, and so on. Soon you’ll be well on your way to being debt free!

3. Set up a tight budget 

Living the cheap college life doesn’t always get to end once you graduate. The tighter your budget is, the faster you can tackle those student loans. Analyze your current budget and make adjustments, remembering that student loans are temporary and this is a short-term budget. The sooner those loans are paid off, the sooner you can start enjoying more financial freedom.

4. Pick up a side gig 

Maybe you have free time on weekends, allowing you to pick up a serving job at a restaurant. If you don’t have that time, consider selling your used clothes or turning a hobby into a side gig. Whatever method you choose to increase your income, be sure to put the money you make directly towards your student loans to pay them off faster. 

5. Make automatic payments 

One of the best ways to make sure you’re paying enough every month is to set up autopay. Not only does having the money taken directly out of your account each month hold you accountable for paying, but it also allows you to just work and not worry about how much to pay and when to pay it. 

This time period of being in debt is just temporary – if you start paying now and work hard, you can pay off your debt sooner than you expect. We hope you give these tips a try and that they will help you tackle your student loans quickly so you can live a loan-free life! Contact us to learn more about the services we offer.