- Bank Loan
- Bankruptcy
- Budget
- Children's Future
- Consumer Proposal
- Credit Cards
- Credit Counselor
- Credit Report
- Credit Score
- Debt
- Debt Collectors
- Debt Consolidation
- Early Retirement
- Financial Freedom
- Financial Literacy
- Financial Problems
- Financing For Renovation
- Gambling Debt
- Holiday Debt
- Income Tax Debt
- Investment
- Money
- Money Management
- Money Saving Tips
- online fraud
- Online Scams
- Owing A Car
- Pawnshop loans
- Payday Loans
- Refinance
- Running Out Of Money
- Save Big Money
- Saving Tips
- Secure Retirement
- student loan
- Tax
- Uncategorized
- Wage Garnishment
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- November 2015
- October 2015
- September 2015
- August 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
7 Tips for Paying Off Student Loans
The time that you spend as a student can be fun and exciting, but if you have borrowed a lot of money to get through school, the time comes when you must repay those loans. It is important to pay these off as fast as you can so they are not looming over your head and collecting interest for years into the future.
Here are 7 tips for paying off student loans:
1. Be prepared to make some sacrifices. It’s difficult to see friends in the same age bracket making large purchases like new cars and first homes, and spending money on vacations is always a tempting splurge. However, you have to understand what you can and can’t afford. Make sure that you meet obligations like student loans and credit card bills by making your monthly payment every month on time.
2. Don’t ignore your debt. Many students put off paying the debt for a long time and eventually forget about it. The next thing that will happen is that they hear from a collection agency because their payments are overdue. Start paying your student loan back as soon as possible.
3. Keep your contact information current so that the lender can contact you quickly. Your goal is to repay debt, not to hide from those to whom you owe money. You are probably quite young and will move many times in a short span, so you need to keep your debtor in the loop with current contact information.
4. If you can afford it, pay more than the minimum payment. An even better plan is to double up on payments if possible. The more money you put towards your student loan, the faster it will be paid off. Interest continues to accrue on your loan, so the bigger the balance, the more interest you are paying.
5. If your payments are monthly, consider switching them to bi-weekly. The amounts may be slightly higher, but you will pay the loan off a little bit faster than if you were paying once monthly.
6. There may be some tax deductions that you are eligible for at tax time. Take advantage of those and apply any tax refund to your student loan to reduce the balance even further.
7. Consider a consolidation loan if you have several student loans. Consolidation loans will give you a single payment instead of many payments that are easier to keep track of and easier to pay off faster.
Once your student loans are paid off you will have a clean slate and good credit rating as long as you pay all of your loans on time, without fail. If you find yourself having a hard time meeting your payment obligations, always get in touch with the lender to discuss alternate arrangements.