10 Strategies For Paying Off Your Student Loan Debt
Written By Abena Sey
September 18, 2020
If you’ve made a decision to pay off your student loan debt, you are on the right track towards financial freedom. In fact, think of the possibilities you can create for your financial future once the shackles of debt have been lifted. You can do more financially, when you eliminate your debt. Achieving this goal is possible through dedication and using effective strategies for your debt repayment plan. I share 10 strategies for paying off your student loan debt below:
1 - Find Out Your Numbers
Calculate exactly how much you owe in student loan debt. This may involve making a phone call to your loan service provider to find the most up to date information. You do not want to solely rely on the account balance sent to you in the mail, because the information may be dated. Interest accrues on your account daily, so a phone call may be in your best interest. It is important for you to start with accurate information about how much you owe, the minimum monthly payment amount, the interest amount on your loan, and ways that you can pay. It is a good idea to find out how much of your minimum monthly payment goes towards interest and the principal loan amount. These numbers will help you begin the planning process for your debt repayment. You cannot start a financial plan of action without accurate numbers.
2 - Create A Budget To Include A Focus On Debt Repayment
To create a budget, start by writing down all your monthly expenses. Ensure that your budget accurately reflects your spending in the month. How much money do you have left after all your expenses have been paid? Are there areas in your budget that you can reduce and put the extra money towards debt repayment? Are there any splurges that you can give up temporarily to put towards your debt reduction efforts? It is important that each dollar earned or saved through cutting costs has an assignment. It is very easy to lose track of where your money is going, if you don’t plan for each dollar. It is also wise to reserve some cash in savings to be used in the event of an emergency. I will discuss this further in strategy #3. Save a portion of money monthly, but any money that remains should be applied to your debt.
For more, click on the following link to access “Your Guide To Online Learning Success: Strategies To Help You Achieve Personal Success As An Online Student” By Abena Sey B.Ed, M.Ed