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Many Americans went to college only to owe thousands in student loans, we can help! We’ve identified a few simple ways to get rid of student loan debt fast.
Consolidate or Refinance
Analyze your debt and decide which bills can be consolidated or lowered. If it makes sense for you, consider refinancing your home or car. Refinancing your home will be a bit more work, but if your credit has improved or you have had your mortgage for a few years, you may still be able to lower your payments. Talk to your financial institution to see if this makes sense for your situation.
Looking for another way to save? Refinancing your car is easy! You can simply apply online to start the process and find out your options within 48 hours. Since you have likely had this car for a few months, your credit report change and payment history can lead to a lower payment for you and long-term interest savings. Average customers save $89/month, what do you have to lose?
Write a Budget and Cut Extra Spending
Budgeting can help to ensure you are allocating all of your monthly income appropriately. Consider all of your bills, spending money, and establish guidelines to pay extra on your student loans. Take out some of the entertainment or dining expenses for a length of time that works for your lifestyle. Allow yourself one day per week to dine out or splurge, but try to pack your lunch and choose free entertainment options for increased savings.
Get a Second Job or Find Freelance Work
We know what you’re thinking…. You graduated from college so that you can get ONE good paying job that will provide the income you need, right? Unfortunately, that doesn’t always happen right away and you may have to work additional hours to get on your feet. Even if you end up with a great job right after college, student loans are a nuisance that no one wants to deal with long term. Perhaps an extra $100-500 per month can really help you pay off those loans in a shorter time, while still providing you with the freedom to live your life. Consider babysitting for a friend, freelance work, a part time job, or even mystery shopping as a way to fill in the income gap.
Find a Job that offers a Loan Forgiveness Program
While every job does not over student loan forgiveness, there are quite a few out there that do. If you are able to find a job with a program like this, take advantage! They may require you commit to a few years with the company, but it may be worth it depending on the amount of your student loans. Having a hard time finding jobs that qualify? Try these websites for more tips:
Pay More than the Minimum
This one is simple. If you wrote out your budget, refinanced your loan, got a second job, and you are spending less on entertainment, you should be able to make a higher payment. If your payment is $250, pay $300 or more. The amount you overpay can vary per month based on your financial situation; however, paying extra is the key to saving on interest in the long run!
If paying more than the minimum doesn’t work for you, there are others ways to pay off student loans such as prioritizing high-interest loans or working for an employer that offers repayment assistance.
What are you doing to payoff your student loans? Share your tips with us on Facebook!