Do you have a student loan you want to quickly pay off?
Student loans are a burden to a lot of people. After you spend so many years to get your diploma, now you need to spend more years to pay off your student loan. Even though it may seem like you are never going to be able to be debt-free, there are some ways you can achieve it much sooner than you think. Here are 10 ways that will help you pay off your student loan in just a couple of years.
DON'T PUSH IT BACK
There is one of the biggest reasons people have student loans 10, 20 years after they graduated. Nevertheless, it is the fact they avoided thinking and talking about it for years. Pushing back your student loan won't make it go away.
You are only extending the stress and pressure that those thousands of dollars in debt put on you. The first step toward loan free life is to stop ignoring it. Accept the fact that you have a loan you need to pay off, and you want to do it fast. As scary as it may seem, you need to face it head-on.
START PAYING IT OFF IMMEDIATELY
Don't wait another day, week, month, or year. The right time to start paying off your student loan is now. Making the first step is always the hardest but with the right tactic, it doesn't need to be. If you are still a college student then you can get ahead and put aside a certain amount of money to use after you graduate to pay off your loan. Even putting aside $20 will help you tremendously in a long run.
GET FAMILIAR WITH THE LOAN POLICY
Most people are not even sure what their loan policy is. Learn as much as you can about student loans. There are subsidized and unsubsidized loans. Subsidized loans are need-based loans. The interest does not accrue until after your grace period. The period after you graduate is six months.
After those six months, your subsidized loans will start accruing interest. Unsubsidized loans are not need-based. The interest is accrued as soon as that loan is dispersed to your account through your entire time in college. The unfortunate thing is that you don't get to pick which one of the loans you'll get. It's all based on the form you fill out through the US Department of Education.
LIST YOUR STUDENT LOANS
To list your student loans, use an excel sheet. Write down the amount of each loan, the interest rate, and the type of loan it is. This will help you to have a clear view of what exactly is happening with your loans.
Whenever you need to, you can go back to that excel sheet and find the average interest rate for different loan types. You can check the ones with the highest interest rate or which one is the biggest. Listing your student loans will make them more real, and that will help you to take them seriously.
MAKE A PLAN
Now that you are familiar with what kind of loan you have, you need to plan how you want to pay it off. Without a solid plan, you won't be as efficient at paying off your student loan as you will be after taking it seriously. Planning helps you to determine what resources will you need the most to reach your goals. Planning decreases risk and shows what you need to accomplish in a more organized way.
SET A GOAL
When it comes to paying off a debt, you need to set goals. Aimlessly trying to pay off your loan with no goal in mind will take you way longer than it should. Have a goal mapped out and stay on track. That will motivate you and help you envision that finish line and you being debt-free.
Don't only set one big goal. Broke it into small goals of how much you need to pay off each month to stay on track. Share your goal with others. This will provide a sense of accountability you need to not get off the track.
CHECK YOUR CURRENT FINANCIAL STATE
Without knowing your current financial state you won't be able to decide how much you need to pay off each month. You need to take into consideration how much monthly income you have and what are your expenses.
Take into consideration all additional expenses you might have during the month such as birthday presents, trips, insurance, and so on. If you are not good with finances, ask for help. Maybe there is a family member or friend that can guide you. Be totally transparent so that you can know exactly what you need to do with the current financial state you are in.
CUT YOUR SPENDINGS
Saving money while making more money is the only way you can get rid of your loan fast. We all have something we like to spend more money on. Most of the time those are the things we can live without. Although you should not completely forbid yourself to get that thing once in a while, you should know when it is excessive.
Cutting your spending on electricity, water, eating out, coffee-to-go, clothes can significantly help you achieve your loan-free life. Think of it as cutting out now to treating yourself more when your loan is paid off.
GET ADDITIONAL INCOME
Just cutting expenses isn't enough. You still need to make more money every month than you spend.