The fastest way to pay off student loan: Credit Counseling
It is seen that 1 out of every 10 Americans are still paying for their college degrees. This blog will guide you on how to pay off your student loan. Our professional guidance on credit counseling will help you manage every loan.
According to a recent survey conducted by the National Foundation for Credit Counseling, as much about 40% were unable to save for emergencies owing to their student loans. On the other hand as much as 30% were unable to save for retirement. So it is quite evident that with a student loan there is little you can do. Thus it is best that you pay off such loans. We list here some simple steps you could follow to pay them off faster:
- List your debts
It is possible that apart from your student loan, you may have a lot many other types of loans. If this is the case then there is a need for you to list out all of them. List the smallest first and biggest at the end. You must not forget the interest component and consider the principle amount to begin with. You must list all including your credit card payments as well. Our professional financial consultant mostly shares that people who connects with The Accounting and Tax forcredit counseling suffer due to unplanned loans.
- Start by paying off the smallest one to begin with
When you are looking to pay off your debts, it is best that you begin by paying off the smallest one to begin with. This will give you better peace of mind and help you in the long run.
- Once paid off concentrate paying off the next one
Once you have paid off the smallest, your next target must be to pay off the next one. This way you will be on course to be from debts and leas a lot freer life. Paying off debt is more of a habit which needs to be developed.
- Find out more money to pay off your debts
Generally it is seen that it takes about 18 to 24 months to get out of debt using the debt snowball method. This, of course, depends on the quantum of the total loans involved. However along with the amount of the loan, it also depends on what you are willing to sacrifice in the short term to get out of debt faster. The following are some great ideas to speed up the process.
- Sell old stuff
You need to look out for those items which you might have bought at some point but they are no longer in use. Try to convert these things by selling them and paying off your debt.
- Earn more
You need to enhance your income levels to pay off the debt faster. You could consider some part time projects like Uber, freelance, or ask for overtime at work. It is something which is temporary, so do not worry about finding a side-gig you can sustain for years.
- Budget better
You must make a right budget and then try to follow the same. With a budget you would always know if you are spending unnecessarily. Look for ways to save money, and scale back in all areas of your budget until your loans are completely paid off.
In conclusion, we hope that by following the above mentioned steps you would not only be able to pay off your student loan faster but pay off any type of debt faster. The whole point of getting out of debt is to free up more money for what you want. With your debts paid off we are sure you would be able to live a much freer life.
