July 8, 2023 | Eul Basa

How to Realistically Pay Off Your Student Debt


Student loans seem to be part of the average millennial’s life. Unfortunately, they can significantly hinder one’s ability to put a down payment on a house, purchase a car, or even just live comfortably. Try as we may, saving up little scraps here and there for our student loans oftentimes isn't enough. So, how do you realistically save enough money to get rid of those pesky loans? These small tips can make a big difference in your life.

Understand Your Debt

Before you make those payments, you need to understand what you owe. Look into the interest rates, how much time you actually have before repayment, and what you can afford. Play around with different repayment scenarios with calculators or budgeting. Based on how much you make and the interest rates, you can plan out which plan is best.

Woman Writing on a Notebook Beside Teacup and Tablet ComputerPexels

Make Necessary Cutbacks

Speaking of budgeting, it’s likely necessary to help you pay off those loans. You don’t need to go out of your way to never enjoy anything, but you need to be smart about repayment. Go through your monthly purchases and see where you can make appropriate cuts. It may suck to give up a few of those luxuries, but it’ll be worth it when you’re debt-free years ahead of schedule.

A good way to figure out your financial situation is to start writing down your purchases. You can also keep your receipts. Having physical copies of your spending opens your eyes to where your money goes. In an age of plastic, it’s easy to tap into our savings without thinking. But when you’re planning to dig out of debt, you need to be more conscious.

Lady in stripped dress with piggy bankPexels

Don’t Wait to Make Payments

A common mistake students make is waiting to make payments. Recent graduates tend to wait until the last minute to make any payments, but you shouldn’t. If you can afford to make payments immediately, do so. There’s no real penalty to you contributing early. Plus, interest rates accumulate during the grace period, so it’s best to get ahead. Paying right away gets you out of debt earlier and gives you peace of mind.

Woman in Brown Coat Holding a Bank CardPexels

Add a Little Extra

It may sound like a good idea to make minimum payments but consider otherwise. You may be paying less in the short term, but in the long run, you may be paying more. Interest rates can skyrocket when you make minimum payments, actually making you pay more. Not to mention, when you pay an extra amount every month, you’ll get out of debt much faster. Depending on how much you contribute, you could shorten your repayment period by several years.

This is why it’s a good idea to look into how much you owe and the interest rates. It’s also important to track your spending. If you cut corners, you may discover that you have more to add to your loans than you thought. Monitor your finances and contribute a little more each month if you can. You’ll undoubtedly be surprised at how quickly your debt decreases.

Crop woman counting money at modern office tablePexels

The Bottom Line

Getting yourself out of debt is hard, but it’s not impossible. It also doesn’t need to be a huge stress on your life or bank account. Sit down and go through what you owe. From there, work out which repayment plan is best for you based on your finances and spending. It may be hard, but monitor your spending so you can contribute more than the minimum amount due. The more you contribute, the faster your debt will deplete and the sooner you can get back to normal.

Person Writing on White PaperPexels


READ MORE

successful

Successful People Share Their 'Easy Money' Secrets

Having a little extra cash at the end of the day is never a bad thing, right? Successful people answer “What is your way of making ‘easy money’?"
April 7, 2021 Eul Basa
112

Rich People Share The Easiest Way To Make Over $100K a Year

While many people live pay-check to pay-check, there are those who are able to earn over over $100K a year. Here are their stories.
May 21, 2019 Eul Basa
1

Dishonest People Confess The Most Unethical Way They've Made Money

We searched the web for the most unethical ways people have made money and the answers have been both hilarious and frightful.
April 7, 2021 Eul Basa
123123123

Regretful People Share The Most Expensive Mistake They've Ever Made

Often the biggest mistakes we make are the ones that end up teaching us the most. We ask the Internet, “What's the most expensive mistake you've ever made?”
September 16, 2018 Eul Basa
easymoney

The Biggest Money Mistakes People Are Making, As Told By Successful Savers

Whether we step in or not, watching other people make silly money mistakes can be frustrating, especially if you've made those same mistakes. 
August 25, 2018 Eul Basa



Dear reader,


It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.


Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!


Warmest regards,

The Moneymade team