A lot have been said about macro and wide-scale measures to help alleviate the growing problem of student debt in the country. But what can you and me – the average American – do to pay off our own individual loans?
Here are a few tips to do just that:
Earn more – and then earn some more
We can’t pay off student debt if we don’t make money. That’s a no-brainer, but you would be surprised at how many people miss out on opportunities to earn extra money. Getting another job is a great way to earn some extra dough, especially if your first (and assumed to be primary) job leaves you with enough free time to take a second part-time job. Then you can turn your hobbies like blogging or graphic design or writing into profitable ventures. All you need is a little creativity to make this possible.
Track your expenses
Another way of tackling the problem is to keep careful watch of where your money goes. That daily latte, pack of cigarettes and/or trip to the department store can whittle away at your cash reserves without you knowing about it. Keeping credit card statements and a logbook of all cash expenses will be great help when you’re reviewing your lifestyle and what you can cut out to save more money.
Consolidate your loans
Keeping track of a dozen student loans is a nightmare that sucks up a lot of time and effort on your part. If you’ve been taking out government loans, then you can enroll in the loan consolidation program to roll them all into one neat package. Even if you took a private loan out for college, you can still explore other repayment options to better manage your student loan debt.
Pay off your debt ASAP
If you get some extra money, put it into paying off your debt instead of buying a new TV or a set of clothes. Remember that each dollar in debt will cost you about four to seven cents each year – and probably more with costly private student loans. The faster you pay off your debt, the less money you waste on mounting interest rates.
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