Graduating from college is a cause for celebration, but it can also be stressful if you’re one of the millions of graduates who have student loans to pay off.
Without setting a budget and a repayment plan, students can run into money issues resulting in them seeking debt help and weighing the pros and cons of consumer proposals and other debt solutions.
Here are ten tips to keep you on top of your finances and help you get started on your journey to becoming debt-free.
1. Create a Budget and Stick to It
Creating and following a budget is one of the best ways to get your finances in order. Figure out what you can afford to pay each month towards your student loans, and make sure to stick to that budget.
2. Make Extra Payments When You Can
If you can afford to make extra payments on your student loans, that will help you pay them off sooner. Try to make at least one extra payment each year to get rid of your debt faster.
3. Sign Up for a Graduated Repayment Plan
If you can’t afford to make large monthly payments towards your student loans, consider signing up for a graduated repayment plan.
This will allow you to make smaller payments at first, and then increase the amount you pay as your income grows.
4. Request a Lower Interest Rate
If you have good credit, you may be able to get your interest rate lowered on your student loans. This can save you a lot of money in the long run.
5. Use a Student Loan Consolidation Calculator
If you’re considering consolidating your student loans, use a student loan consolidation calculator to figure out how much money you can save.
This will help you make an informed decision about whether or not to consolidate.
6. Find a Part-Time Job
If you’re struggling to make your monthly student loan payments, consider finding a part-time job to help you make ends meet. This extra income can go a long way in helping you pay off your debt.
7. Make Lump Sum Payments Whenever Possible
Whenever you have some extra money, put it towards your student loans. This will help you pay down your debt faster and save on interest payments.
8. Live at Home for a While
If you’re just starting out after college, consider living at home for a while to save money. This will give you more money to put towards your student loans each month.
9. Use a Student Loan Payoff Calculator
If you want to get an idea of how long it will take you to pay off your student loans, use a student loan payoff calculator. This will help you create a plan to pay off your debt as quickly as possible.
10. Stay Motivated!
Paying off your student loans can be a daunting task, but it’s important to stay motivated. Set small goals for yourself and celebrate when you reach them. This will help keep you on track to pay off your debt.
Debt can be overwhelming for recent graduates, but with a little organization and planning, you can get started on paying off your student loans. Follow these tips and you’ll be on your way to being Debt-Free!