Tips for Paying Off Student Loans
Graduating from college and entering the world of full-time career-building is an exciting time in anyone’s life. Unfortunately, many college graduates enter the workforce with crippling student loan debt that can keep them from fully enjoying their newfound freedom. If you are a recent graduate who is struggling to pay off student loans, here are some tips that can help you become debt-free more quickly and efficiently.
Have a Plan
Depending on how much debt you have, you can create a 3 to 10-year plan to achieve your debt-free goal. By actually seeing what you need to put in each month and how this will help you reach your goal, you can visualize an endpoint that will keep you motivated. You can even build in a reward, like a vacation you’ve been wanting to take, on the day you make your last payment.
Pay More Than the Minimum
It’s tempting to pay the minimum on your loans every month to free up funds to pay rent, buy a new wardrobe for the office, and have a little fun. However, paying just a bit more on your loans can go a long way. You can see the actual impact by using this repayment calculator. Though you may not have the money every month to put extra toward your loans, any time you can pay more than the minimum will put you further on the road to becoming debt-free.
Set Up an Automatic Repayment Fund
Saving money can be difficult if you wait until the end of the month to determine how much to put into savings. Setting up an automatic withdrawal at the beginning of each month that goes into a repayment fund makes sense because you never get the chance to spend the money. You’ll count it as part of your monthly budget and never feel tempted to spend the extra money on things you don’t need.
Work with a Financial Planner
Many college graduates feel a little lost when they begin their careers. If you are unsure how to set an effective budget, how to handle your student loans, or have other financial questions, it makes sense to work with an advisor. A financial planner who specializes in college graduate issues can help you get on the right track to become debt-free more effectively.
Don’t let a mountain of debt impact you as you start your new life. By putting a plan in place to achieve your financial goals and working with the proper professionals, you can get on the road to financial success early. If you would like more information on handling student debt, please visit our website.