A large amount of student debt is a major issue that many millennials face today. Hence, paying off student loans is high on the agenda of those who are affected. In this post, I want to share with you 5 ways to pay off your student loans faster.
Make More Than The Minimum Repayment
The single best way to pay off your student debt faster is to make more than the minimum monthly repayment. I understand that that is often easier said than done, but paying off more than the minimum is the fastest way for you to get out of debt. I highly recommend you do that, even if it means cutting back on other things in life. Remember, it won’t be forever and you will feel a massive weight of your shoulder once you have paid off all your student debt.
Set Up Automatic Payments
Automation is a great tool to use when it comes to managing your personal finances, and paying off your debt is one of them. If you want to make sure you never miss a payment and want to be able to budget correctly for all your monthly debt repayments, then setting up automatic payments is the way forward.
Start Repaying Immediately After Graduation
A mistake graduates often make is to wait after graduation to start repaying their student loans. I highly recommend starting repaying right away, provided you are in a position that allows you to do that. The sooner you start, the faster you can repay your debt, and the lower your interest payments will be over the remaining term of the outstanding loan.
Use Tax Refunds To Pay Back Loans
While they may sound like a myth, tax refunds do happen. In fact, tax refunds happen more often that you’d expect. So, why not use any tax refunds you receive to pay off a little bit more of your student loan.
Pay Off Highest Interest Loans First
If during your time at university you took out several different types of student loans, then a smart way to help you pay off your entire education debt is to start by paying off the highest interest loans first, as these cost you the most. This is commonly known as the Avalanche Method of paying off debt and is the most effective way to clear your student debt burden.
If you want to learn more about how you can improve your financial situation, download my ebook Everything You Need To Know About Money – The Complete Financial Intelligence Handbook and develop the level of financial intelligence you need to make smarter financial decisions today!