The good news is, there is a way out of that pile of student loans you owe. Do not neglect paying back your loans. If you do that, you will have trouble later borrowing for other vitals like a home. Getting rid of your student loans is the best move forward. Here are several tips that will help you get rid of your student loans in the fastest way possible:
Make a Plan
Step one is to calculate exactly how much you owe in student loans. Most people are just too depressed to look at the numbers, they never bother to. You must access the loan service website and get the exact figures. Then, calculate the amount you have paid so far and the amount that is due. You need to calculate interest rates accurately. Put all the numbers into a spreadsheet or a similar program you are comfortable using. Now you can make a plan as to how much you should pay each month to finish paying off all your student loans in 5 years or less.
Ask Your Employer for Help
If you are hired soon after graduating, you may be able to ask your employer for help paying back student loans. Some companies, like PricewaterhouseCoopers, have special millennial plans that help new grads pay down student loans with annual financial contributions. Ask your employer if the company you work for has a similar program. If you are still looking for a job, perks like this are very worthwhile to consider.
Control Compulsive Buying Habits
You cannot pay down student loans and shop for luxury shoes on a weekly basis at the same time. Millennials are easy victims of compulsive buying habits. If you don’t control your spending, you will be calling an Atlanta bankruptcy lawyer sooner than you think. Cut off all your unnecessary living expenses. These include entertainment and vacations. Find cheaper alternatives to save money until you are debt free.
Take up a Second Job
The more income you have, easier it would be to repay your loans back in no time. If your current salary is not enough to repay your debts as fast as you like, consider taking up a second job. You can work part-time or freelance from home during free time. Use this secondary income exclusively to repay your loans in addition to what comes out of your existing salary. Pay more than the monthly required amount to keep interest rates from skyrocketing.
You may want to live in a hip condo, but you will have to hold that thought until you are debt free. Rent is just as expensive as loan payments. For now, find yourself a safe and comfortable place to stay, preferably with a roommate to split the rent with. You will have more money to spend this way. Once you are debt free, you will be able to invest in your dream home.
Authorize Automatic Payments
Signing up for automatic payments has many benefits. It’s very convenient for starters. Also, some lenders reduce the overall interest rate for those who choose this option. It will probably not be a huge amount, but add the little reductions and you would have saved a lot of money by the end of the year.
Don’t waver in your commitment to repay student loans in full. Follow the above steps, even if some suggestions sound harsh. A temporary pain is much more preferable than a long-term inconvenience. Most of your troubles will go away once the student loans are paid off. Visualize that goal and you will be motivated to stick to your plan.