Is just the mere thought of paying off your student debt giving you nightmares? Don’t get stuck in a cycle of debit orders, overdrawn limits and counting your pennies. Get our tips on how to pay off student loans right here. Say goodbye to debt!
Is it Smart to pay Off Student Loans Quickly?
Yes of course! If you are able to pay off your debt faster than the agreed date, then do so. However, we would only suggest going this route if you meet the following criteria:
- you have a solid financial plan
- you have the means to do so
- you are trying to avoid interest rates
Remember, you don’t want to pressure yourself to make payments that you cannot afford. The desire to pay off your loans quickly might be valid, but make sure it is possible to do so without adding further financial stress.
Tips for Paying off Student Loans
Paying off student loans is all about planning properly. You will need to budget carefully and research your finance provider and their options carefully. Listed below are our top tips for paying off your student debt:
- Make Additional Payments
- Get a Part-Time job
- Stick to a Budget
- Arrange for a Repayment Plan
- Use ‘Found’ Money
- Make Bi-Weekly Payments
- Sign up for Automatic Payments
- Stay Focused
Make Additional Payments
This is only an option if you can afford it. Make larger payments to cut your loan amount more quickly. By doing this you are lessening the duration period of the loan and in turn the interest rate as well.
Get a Part-Time job
In today’s economy many people must work two or sometimes even three jobs. If you are a college student apply for an entry level job. There are also tons of freelancing opportunities that you can do remotely. This gives you an extra surge of income.
Stick to a Budget
Good budgeting skills is essential to handling debt. This gives you the chance to identify what your set expenses are, and where there is some wiggle room to add to your loan payment. Other than setting up a budget, make sure you stick to it.
Arrange for a Repayment Plan
Speak to your service provider and work out a repayment plan that works for you. Don’t be over-ambitious with your payments. Arrange for something that is realistic and attainable. Communication is key between you and your finance provider.
Use ‘Found’ Money
You may not have heard of this term, but simply put ‘Found’ money is any extra money that you receive from friends, family or other sources. You can use these gifts or donations towards your student loan.
Make Bi-Weekly Payments
Trick yourself into paying more on your loan, by doing bi-weekly payments. You’ll end up making an extra payment. This cuts the time on your loan duration and saves money off your interest costs.
Sign up for Automatic Payments
This will ensure that you don’t miss any payments which could result in added interest. Remember, debit orders are non-negotiable so you must make sure that you have enough money in your bank account for your payment dates.
You may end up feeling frustrated by your student loans, but don’t lose focus. Slow progress is better than none at all. Eventually you’ll get there! Just stick to our tips on how to pay off student loans.
Don’t Spend a Lifetime in Debt
Education does not need to entangle you in debt. Choose an affordable option like distance learning. We offer a variety of courses that won’t break your bank. Contact us today:
- Call us for free on 0800 39 00 27
- Or fill out this contact form for a call back