Now is the time to take control of your finances.
If you’re struggling to clear student debts well into your working life it can feel like a horrible hangover from your student days. The reality for most of us is that student debts are up in the five figures and that’s a substantial amount of debt to clear in a short space of time. The issue for people with a large amount of debt is that it’s all too simple to start increasing your debt because it’s not as easy to borrow at a good interest rate and you might turn to doorstep loans or loans for people with bad credit. However, if you feel like you’re just not making a difference to what you owe there are some easy ways to make a dent in your student loan and start getting it cleared.
Start paying it off right now
Depending on the loan, you might be offered a grace period in which you don’t have to make any repayments on the loan. This can seem like a great idea at the time, as you can just forget about the student loan for a while as you start your working life. However, the reality of doing this is that your student loan will just sit and accumulate even more interest. And rather than chipping away at what you owe, you’re just increasing that total for a future date. So, don’t delay when it comes to starting to make repayments on your student loan. Even if you can’t pay off that much, use anything you can to begin reducing the debt right now and you’ll be debt free much faster.
Overpay, overpay, overpay
Often, graduating with a five figure student debt can feel very overwhelming and many of us just accept that this is a debt we’re stuck with for some time. However, with something like a student loan it’s often the little things that make the difference. You may not be able to make large overpayments or clear the debt with a big chunk of cash but almost all of us can create a little extra we can use in our current budgets. If you want to make a dent in your student loan without an increase in income then look for all the small ways that you can save, from cutting out that daily coffee to giving up gym membership or walking to work instead of paying for petrol. Put all those small savings towards overpaying your loan and you’ll start to make more than a dent in paying it off.
Don’t take on any more debt
Additional debt will complicate making those student loan repayments and could mean you end up postponing or delaying them. Student loans often have more favourable terms than other types of debt but that’s not a good reason to ignore them and take out lots of new loans and credit cards. Until you’ve made a dent in your student loan steer clear of other debts. If you need additional income then look for easy ways to earn this. You could rent out a spare room in your home, for example, or ask for additional shifts, a promotion or overtime at work. Try selling unwanted possessions online or taking an extra part time job. Avoid additional debt at all costs and use any extra money you make to put towards clearing your student loans to get debt free more quickly.
