A new year has begun and time to make some new year resolutions. If you are reading this, it is a fair to say that you are a student with a student debt hanging over your head. Do you feel that you are making no progress with your debts? Do you feel stuck dealing with the same student loan month after month and getting nowhere? Do not despair, if you are willing to exercise some creativity you can reduce your debt much faster than you think.
Over the last few years, student debt is one of the only forms of debt that has grown eclipsing auto loans and credit cards. In many cases, students do not understand the gravity of their student debts and how to manage this debt. Most students who have taken out student loans are very aware of their debt burden and are always seeking out guidance on how to manage their student debt.
When it comes to managing your student loans and debts, by far the best approach is remain calm and think logically about how you can reduce your debt. Take a step back and look at your debt burden from different vantage points, make a list of your obligations, think about your objectives, and always remember that there are always options.
With a new year starting, here are few ideas to help all those student with debts to start the year on the foot and tackle their student debts and loans head on.
- Always have a positive attitude. Achieving any goal requires determination and a feeling that you can succeed.
- Make a list of all your debts with the highest listed at the top.
- Make sure you understand your loan conditions and requirements, make a plan and create an accurate repayment schedule.
- Look to study at a college that assists you to rely less on student loans.
- Be realistic and know your limits. Don’t borrow more to get your degree than the salary you can reasonably expect to make in your first year out of school.
- Contact your lender and inform them that you wish to prepay your loans and reduce your interest payments.
- Set up an automatic payment system to avoid missing any payments.
- Pick a student loan and repayment plan that suits your needs.
- Double your student debt payments cut your student loan faster. with any extra cash available, try repay your debt principal.
- While you may want to spend your paycheck on a nice big place of your own, living frugally and somewhere affordable is the best way to save money – money that could be directed to paying off your student loans.
- Check with your accountant or tax planner to see if your loans are tax-deductible.
- Make a budget and start living below your means. The key to any sound financial planning is to spend less that make and save the difference.
- Consider asking your employer if they would be willing to include student loan repayment reimbursement as part of your benefits package.
- If you are fortunate enough to own a home with some equity, try to refinance and benefit from the potentially lower cost debt that may be tax-deductible.
- It might seem obvious, but try to pay more than you are required to each month and reduce your loans faster.
Paying back your student loans can be intimidating but don’t freak out. Believe in yourself and understand that you can pay back your student loan even if it takes a little time.