Image : http://www.flickr.com
Student loans are the way most of us afford to go to college and a lot of us even end up with more than one. But come graduation time, we find ourselves mired in debt with not much of an idea about how to pay off our student loan debt. Don't despair! There are a lot of things you can do to ease the burden of your student loan debt. Here's a few to get you started.
1. Consolidate your student loans
Probably the easiest way to reduce your repayment obligations is to consolidate your student loans. This basically means that you take out a single, cheaper loan to pay off all of your outstanding student loans. The cheap rate from one lender both reduces your payment obligations and also makes things a lot more convenient as paying off one lender is a lot easier than paying several student loan lenders. There are no shortage of companies and financial institutions that are in the business of student loan consolidation, so shop around and go for the cheapest deal.
2. Plan for Repayments
This basically means putting away a set amount each week or month that goes directly towards paying off your student loan debt. The amount will vary depending on the level of your debt, but make it easy on yourself - set up a direct payment to your lender through your bank account (most banks have an online facility for this). If this is not possible, then at least have an account that you cannot touch with your bank cards that you deposit money into regularly. That way you can use the money in that account to pay your loans.
3) Pay Your Loans Quickly
The longer you leave your loan to accrue interest, the longer it will take to pay off and the more expensive it will be. If you refinance with a student consolidation loan, make sure there is a facility to pay it off faster than is strictly required. This will save you a lot of money on repayments in the long run.
4) Don't Use Credit Cards to Make Loan Repayments
Paying off loans with other credit is a bad idea and will usually end up costing you a lot more money and getting you further into debt (as credit cards are usually more expensive). Find the money to pay off your student loans any other way but by using a credit card.
Now, these few tips should help you avoid the most common pitfalls that people experience when repaying their student loans. Getting an education is important and you are probably going to need to get some loans, but don't let them control you.
Visit : Hipmore Compare auto insurance quote Auto insurance quotes florida Auto insurance rate quote
No comments:
Post a Comment