Many of us are all too familiar with the sinking feeling that comes with lingering student loan debt. The stress can feel like a grey cloud hanging over your head. Here are a few tips to help you expedite your student loan payments and alleviate some of your anxiety.
- Make more than just the minimum payment. When you only pay the minimum amount, it takes longer to pay back the loan. This not only prolongs the amount of time you spend paying interest, but also means you ultimately pay a higher amount for your loan.
- Try cutting back on non-essential expenses—like cable TV and eating out. Additionally, if you earn a raise, use half of your higher income toward paying off your student loans. It is also wise to apply any windfalls (such as tax refunds, settlements and inheritances) towards your loan payments.
When it comes to student loans – or any kind of loans - it’s important to be aware of the interest rate so you can pay down the loan with the highest rate first. The longer you carry debt, the more money you end up spending.
This information in the Financial Tips section is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.