Do you have student loan debt? It’s estimated that 40 million Americans have at least one student loan. The average amount owed: Nearly $30,000.
Whether you are starting your first job or have been employed in a post-college job for some time, there are some effective ways to help reduce the amount you owe and getting closer to paying student loan debt altogether.
For starters, after each pay raise you may want to consider increasing the amount you pay each month on your outstanding student loans. And just like with a mortgage, paying extra each month toward principal will help you pay off your student loans faster. Do you get bonuses or tax refunds each year? Consider directing some of that money to help pay off your student loans faster.
One of the biggest obstacles to paying off student loan debt is other debt. Think twice about taking out a large car loan to purchase a new car. Try to avoid piling on credit card debt to purchase things you don’t really need and can’t afford on your current income. Making wise financial decisions now can help you pay off your student loans more quickly down the line.