Different Ways to Pay Off Student Loans

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student-849825_640Are you struggling to pay off your student loans?

It’s one of the financial obstacles of most millennials that prevents them from investing independently, or with a financial adviser. The burden of college loans weigh down graduates and it prevents them from seizing new financial opportunities until all debt is cleared.

So how can you get out from under that debt quickly?

Here are several ways that you can pay off those student loans faster:

  1. Sign-up for auto deductions. Automatic online loan payments can make your life easier. Even if you’ve been repaying your loans for years, you can still sign up now.
  2. Take on a part-time job or extra work. If you have the time and energy, this is one of the ways to also pay off your debts. Consider taking a part time job to add to your monthly income and have the money you earn go to repaying your student loans. A few extra hours a week for a year can eliminate thousands of dollars from your debt quickly. Think of it as the short-term grind will be definitely worth it for the long-term gain.
  3. Resist the urge to shop. Do you really need to buy that item or you just want it to “reward” yourself? If you can go on a no-spending spree for 12 months without upgrades, then do it. You’ll be surprised how much you can save without going to the mall.
  4. Do things at home. You can save more money by doing things at home such as making your own meals, watching movies on Netflix or making your own cocktails and that can be a whole lot cheaper than going out. You can use the money you saved to go to your student loan payments.
  5. Consolidate your loans or consider student loan refinancing. If you are looking to get lower interest rates and have several loans you need to pay off, this could be the best option for you. What’s more is that if you use SoFi and are a new member, you will receive a $300 welcome bonus when you choose refinancing options. You can select the best plan that fits your needs since SoFi offers a wide range of options for your monthly payments and speed of your pay off and you can get refinanced in as little as 15 minutes.

The most effective way to reduce debt is to plan ahead, focus on your future financial goals, make some sacrifices and delay instant gratification as much as possible.

If paying off your debt within a year is not possible, you can look into your next option which is figuring out how to reduce the amount of time you are in debt. However, people can sometimes lose sight or get discouraged of future financial goals, especially if they are paying off debt for quite some time. Don’t lose hope; the people who succeed in reducing college debts are those who live within their means and those who are conscientious about saving.

Don’t forget to look into refinancing with SoFi to see if you can save money and get your student debt paid off sooner. Plus, new members get a $300 welcome bonus if you use this link!

Posted in: Saving Money

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