How To Pay Off Student Loans Fast.
If paying off your student loans feels difficult, totally impossible hold on just a minute. Yes, paying off your student loans can seem totally frustrating, but it doesn’t have to be.
The best way to pay off student loans fast is to pay more than the minimum payment every month. The more you pay from your loans, the less interest you’ll owe and the quicker the balance will vanish.
But by following these steps below, you can get on a fast track to reducing your student loan debt for good. Paying off your student loans takes time, hard work, and a whole lot of sacrifice, but it’s totally possible! Let’s make it happen.
How To Pay Off Student Loans Fast
Get on a Budget
Take this very seriously. If you’re not doing this, now is the time to make a budget and stick to it. A well planned monthly budget will show you exactly where your money is going and where you can cut back. You might even save “extra” money you didn’t know you had (praise!).
A free budgeting app like EveryDollar can even put a line item in your budget for each student loan you’re paying off. That way you’ll see the progress as you keep paying that student loan debt.
Pay More than the Minimum Payment
The easiest and best way to pay off your student loans is to just pay more. But most times that’s easier said than done.
You don’t necessarily have to pay double or triple every month; maybe you can just afford to pay $20 or $50 more every month. Whatever is convenient do it! Any amount that you can pay over the minimum will help you pay off your student loan debt sooner.
Use a student loan payoff calculator to see how soon you can completely pay off your loan.
Enroll in autopay
Many loan providers offer an interest rate discount of 0.25% when you enroll in automatic payments. This is a small amount but can add up to a huge amount later.
Additionally, autopay is generally a good idea, as it decreases the chance that you’ll get into trouble by forgetting your monthly payment.
Make Bi-weekly Payments
Another smart way to make extra payments and pay off your debt is to pay your bill bi-monthly. Instead of making one payment every month, simply cut your bill in half and pay that amount every week or every two weeks.
Even though this sounds like it won’t do much, this strategy reduces your loans each year. That can make a great difference especially if you’re paying off a large balance.
Start a Side Hustle
If your biggest nightmare is income, start a part-time job on the nights or weekends that can help you stack cash quickly. Then, use that extra cash directly at your student loan debt! There are many sides hustles out there, starting from driving an Uber, to walking dogs, to house-sitting.
Remember, the extra job won’t last forever. You’re just trying to get intense and kick that student loan debt out of your life.
Make Some Financial Sacrifices
The last thing you can do to really get your foot in the door when it comes to paying off your debt is to reduce your monthly spending wherever possible.
Whether it’s $50 less per month because you canceled cable or $200 of spare cash per month you didn’t spend going out to eat, look for extra wiggle room in your budget — and put that toward your student loans.
Paying off your student loans is manageable when you plan properly. In order to pay off your student loans faster, you may have to make sacrifices, like getting a part-time job or get strict on a budget, but doing so can help you get out of debt faster.
One of the best things you can do for your future finances is to pay off your student loans fast.