Tips to Help Pay Off Your Student Debt Faster

It’s all well and good (and very sensible) for newly enrolled students to take measures that will minimise the amount of debt they accrue throughout their studies, but that does little to help those who have already graduated and find themselves lumbered with vast outstanding credit. 

Famously, student debt can take a very long time to pay back, but many people feel uncomfortable with the idea of owing money for such a prolonged period, and thus want to try and pay it off faster. If that sums up your position, these simple tips will hopefully help set you on the path to a debt free future, sooner rather than later. 

Make a clear, visual plan 

It may sound obvious to some, but if you want to get on top of your debts it’s important that you know exactly what you’re dealing with. This means understanding what you’ve borrowed, what your interest rates are, and how long it should take you at your current re-payment rate to end up back in the green. By drawing this out in a visual way, you can set clear goals and will be able to monitor your progress, which in turn often motivates a lot of people to keep going, as they don’t feel like they are fruitlessly sending money out into the void without seeing any tangible results. 

Make voluntary payments 

Once you’re earning beyond the minimum threshold to start making repayments on your student loan, they will generally be deducted from your pay automatically. If, however, you have the funds to pay more than the minimum required (ensuring, of course, that you always retain enough to cover your regular expenses like rent and food, etc.) then you are always able to make extra, voluntary payments. This could be savings you’ve been squirrelling away; inheritance you’ve come into; a bonus from your boss; a cash gift from a loved one, or anything else of the sort that helps bring the total due down a notch. 

Set up a direct debit 

If you want to factor extra repayments into your regular routine, you can set up a monthly direct debit with your loan company, or simply into a designated savings account, the funds from which you can then use to make a single, large repayment. By making it a habit, rather than a sporadic system, you not only make consistent progress towards being debt free, but it also becomes money that you factor into your monthly budget and are thus less likely to miss. 

Minimise your outgoings 

The reason you can’t pay off your debts as fast as you like may be due in part to the lifestyle you’re leading. This is not to say you should ever deprive yourself, but it does mean that identifying ways you can cut back could leave you wish extra cash that can go directly towards paying off your student loan. This could be as small and simple as cutting out luxury coffees on your way to work each morning, or as big as moving back to the family home for a while after you graduate so that you have minimal bills to pay, allowing you to save up faster. 

Be realistic 

It’s always important to remember that paying off debt is a long-term goal, and even ‘faster’ doesn’t necessarily mean ‘fast’, unless you’re lucky enough to have the means to pay off the entire thing in one go (which for most people is very unlikely). By setting out realistic, achievable goals in your repayment schedule, you’re more likely to meet them and in turn stay positive. It’s not about a quick fix, it’s about feeling proactive and in control of your own financial future. 

from Finance Girl http://www.financegirl.co.uk/tips-to-help-pay-off-your-student-debt-faster/