In the modern world, education is an expensive investment, and taking a student loan is the only way for many people to fund their pursuit of a degree.
Loans make life easier at the beginning, but paying them back is a serious commitment that requires a solid post-graduation strategy.
Living with debt is certainly burdensome. This is true both for your wallet (if you don’t pay the next installment on time, you may be charged a penalty) and for your mental state.
So, let’s get rid of debt. A small spoiler: you won’t have to deny yourself the usual joys of life.
Table of Contents
1. Stay In Touch With the Lenders
When you notice that there is not enough money for the next payment, go to the bank and talk to the manager. Inform them about the current situation and ask about possible ways to solve the problem.
There is a possibility that the bank will offer to restructure the debt rather than take the case to court.
The bank is definitely more interested in getting your debt repaid rather than dealing with legal red tape. This option may even keep you with a good credit history.
Of course, it’s better to allocate more time to earn some extra money, and here’s an idea of how you can unload your busy schedule when you’re still a student.
Turn to papertyper.ai to get your papers written fast and on any topic. You can select the type of essay and indicate assignment details. Then, be ready to download the finished content. That’s it.
2. Big Loans Go First
Do you have several loans? Make your priority the one that has higher interest rates. If you want to minimize the debt servicing costs, repay it as soon as possible.
Besides, you’ll be able to use the saved funds to pay off your remaining loans.
3. Go Beyond the Minimum Payment
There is an illusion that minimum payments are good for your wallet, but in reality, this is not the case.
By paying a little more each time, you shorten the period for repaying the debt, which means you get closer to your goal. Of course, you shouldn’t allow delays on other loans because of penalty fees.
4. Increase Your Income
At least try it. If you speak a foreign language well, know how to draw up natal charts, bake pies, or edit videos, someone will definitely benefit from your skills and be willing to pay for them.
In addition, go through the things at home and try to sell the ones you don’t need. Sell books, records, clothes you don’t wear, dishes, postcards, and so on.
If this is not an option, maybe you could take on some extra tasks at your current job. This may lead to an income increase or even a promotion.
5. Manage Your Finances
Get your finances in order by recording your expenses. You may see that you could give up some of them and redirect those funds toward repaying your student loan.
Write down your expenses. This will help organize them and identify opportunities for savings. With a financial plan, your expenses will become planned and consistent with your existing income.
6. Don’t Take On New Debts
If you are intent on paying off your student debt, the crucial rule to follow is not to take out new loans. Instead, find an option to restructure the debt or, if you don’t have enough to live on, get rid of unnecessary expenses or find additional income.
7. Rely On Apps
When it comes to paying off debt, technology is on your side. Debt repayment apps are available for:
- Organizing debt information in one convenient place;
- Choosing the most suitable debt repayment strategy;
- Staying motivated by visualizing your financial goals.
Here are some useful tools to try:
- Tally;
- Mint;
- Monefy.
8. Save 10%
Consistency pays off. Always. Develop the habit of saving 10% of your income. This is how you plan your budget and avoid impulse purchases.
If your debt seems unbearable to you, don’t give up hope. Use at least 10% of your earnings each month to pay it off. This will teach you financial discipline. Plus, in the future, the habit of saving 10% of every salary will be handy.
9. Seek Professional Help
If you feel like dealing with debt is too difficult, don’t hesitate to seek professional help. Financial forums, groups, and articles can offer plenty of great tips, and the same is true for podcasts and YouTube videos.
If you want to get rid of debt even before you graduate, you can find a top essay writer and get expert assistance with homework. Meanwhile, you can get an additional source of income to make your student loan easier to manage.
Final Thought
For many learners, student loans become the last hope for getting into their dream college. When the amount of debt becomes threatening, the main thing is not to panic and approach the problem with a plan.
Once you start the battle with student loans after graduation, just don’t give up. Staying persistent and following simple rules are truly life-changing. We have collected them in this article, so use them to have a debt-free life.
