The Student Loan crisis is making headlines and demands for federally approved debt relief are growing. Suggested figures for debt cancellation range from $10-50K. Studies have shown that the average college student leaves school with more than $25,000 in debt. That is a lot of money, even for those lucky enough to land jobs in their fields and earn good salaries. College graduates who have to make do with part-time jobs and lower earnings potential have an even harder time getting out from under the pile of student loan debts.
No matter what your situation, paying off your college loans as quickly as possible will help you get off to a more secure start in life. Here are some tips you can use to pay down your college debt faster than you thought possible:
Know what you owe–read the fine print on your loan documents carefully, including how much you owe, what the interest rates are and when they adjust. It will be impossible to pay down your debt until you get a handle on how much you owe.
Be prepared to sacrifice–if you want to pay down your student loan debt, you will need to make those payments a priority. That will likely mean sacrificing some things you would like to do, like taking a vacation or going out to dinner. In the end those sacrifices will be worth it, and you can start enjoying your debt-free lifestyle.
Make your payments automatic–set up a monthly transfer from your checking account to the company handling the loan. Automating your payments will keep you on track and help you pay down the debt more quickly.
Start making payments today–if you put off making your first payment, you might never get around to it. Make your first payment today, then set up a payment plan that fits into your budget.
Put yourself on a strict budget–speaking of budgets, a strict one is vital when paying down debt. Get out your calculator or a spreadsheet program and analyze what you make and what you spend. Look for ways to cut back, then throw that extra cash at your college loan debt.
Prioritizing your debt payments and budgeting wisely can reduce the amount of interest you owe and help you live a debt-free lifestyle much more quickly.
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