• Business

    Business Ideas

    ALL
    • In-Demand Businesses
    • Businesses That Never Fail
    • Best Passive Income Ideas for Increasing Cash Flow
    • Essential Tips To Start An Online Business
    • Best Websites To Buy Or Sell An Online Business For Free
    • Everything You Need to Know About Online Selling 
    • Current Business Trends: 9 Things to Keep in Mind
    • How to Open a Coffee Shop Business: A Comprehensive Guide
    • Effective Ways to Start your Business from Scratch 
    • The Main Types And Advantages Of Online Business
    Menu
    • In-Demand Businesses
    • Businesses That Never Fail
    • Best Passive Income Ideas for Increasing Cash Flow
    • Essential Tips To Start An Online Business
    • Best Websites To Buy Or Sell An Online Business For Free
    • Everything You Need to Know About Online Selling 
    • Current Business Trends: 9 Things to Keep in Mind
    • How to Open a Coffee Shop Business: A Comprehensive Guide
    • Effective Ways to Start your Business from Scratch 
    • The Main Types And Advantages Of Online Business

    Tips For A Successful Business

    ALL
    • Creative Business Proposal Ideas for Better Sales
    • Easy Digital Marketing Strategies for Small Business
    • Easy Steps to Develop Effective Time Management Skills
    • ClickUp, Trello or Hive?
    • Best SEO Tips for Small Businesses
    • Lessons Every Business Can Learn From Coworking Spaces
    • The Best Digital Marketing Strategies for a Real Estate Business
    • Useful Tips to Make Your E-Commerce Business Successful.
    • Why Do You Need to Track Your Spending
    Menu
    • Creative Business Proposal Ideas for Better Sales
    • Easy Digital Marketing Strategies for Small Business
    • Easy Steps to Develop Effective Time Management Skills
    • ClickUp, Trello or Hive?
    • Best SEO Tips for Small Businesses
    • Lessons Every Business Can Learn From Coworking Spaces
    • The Best Digital Marketing Strategies for a Real Estate Business
    • Useful Tips to Make Your E-Commerce Business Successful.
    • Why Do You Need to Track Your Spending
  • Money

    Invest Money

    ALL
    • Best Safe Investments
    • Investing In Real Estate
    • How To Invest: Are Your Investment Right Your Age
    • Best Alternative Investments
    • Best Investments To Beat Inflation
    • How To Invest In Collectibles
    Menu
    • Best Safe Investments
    • Investing In Real Estate
    • How To Invest: Are Your Investment Right Your Age
    • Best Alternative Investments
    • Best Investments To Beat Inflation
    • How To Invest In Collectibles

    Banking

    ALL
    • Best Savings Account
    • Best High Yield Savings Account
    • Best CD Rates
    • Best Money Market Accounts
    • Best Online Checking Account
    • Best Banking Apps
    Menu
    • Best Savings Account
    • Best High Yield Savings Account
    • Best CD Rates
    • Best Money Market Accounts
    • Best Online Checking Account
    • Best Banking Apps

    Loan

    ALL
    • Best Personal Loan
    • Best Low-Interest Personal Loans
    • Best Personal Loans for Bad Credit
    • Best Personal Loans for Excellent Credit
    • Best Debt Consolidation Loans
    • Best Student Loans
    Menu
    • Best Personal Loan
    • Best Low-Interest Personal Loans
    • Best Personal Loans for Bad Credit
    • Best Personal Loans for Excellent Credit
    • Best Debt Consolidation Loans
    • Best Student Loans

    Insurance

    ALL
    • Sproutt Life Insurance Reviews
    • eHealth Insurance Reviews
    • Cheap Car Insurance Reviews
    • Embrace Pet Insurance Reviews
    • Best Rideshare Insurance Reviews
    Menu
    • Sproutt Life Insurance Reviews
    • eHealth Insurance Reviews
    • Cheap Car Insurance Reviews
    • Embrace Pet Insurance Reviews
    • Best Rideshare Insurance Reviews
  • Forex

    Featured

    ALL
    • Best Forex Trading Courses
    • Best Forex Academy
    • Best Forex Trading Coaches
    • Best Forex Mentors
    Menu
    • Best Forex Trading Courses
    • Best Forex Academy
    • Best Forex Trading Coaches
    • Best Forex Mentors

    Learn To Trade Forex With Dumb Little Man

    ALL
    • Best Forex Brokers Review
    • Best Forex Trading Software
    • How To Trade Forex
    • How to Read Forex Charts
    • Best Forex Indicators
    • Best Forex Screeners
    • Best Time To Trade Forex
    • Best Forex Trading Tools
    • AvaTrade Review
    • CedarFX Review
    • Forex.com Review
    • Interactive Brokers Review
    Menu
    • Best Forex Brokers Review
    • Best Forex Trading Software
    • How To Trade Forex
    • How to Read Forex Charts
    • Best Forex Indicators
    • Best Forex Screeners
    • Best Time To Trade Forex
    • Best Forex Trading Tools
    • AvaTrade Review
    • CedarFX Review
    • Forex.com Review
    • Interactive Brokers Review
  • Stocks & Crypto

    Stocks

    ALL
    • Best Stock Brokers
    • Best Online Brokers for Stocks Under $100
    • Best Online Brokers for ETF Investing
    • Best Brokers for Mutual Funds
    • Best Online Brokers for Bonds
    • Best Blue Chip Stocks
    • Best Swing Trade Stocks
    • Stages of a Stock Market Bubble
    • Best Stock Investing and Trading Podcasts
    • Best Defensive Stocks to Invest
    Menu
    • Best Stock Brokers
    • Best Online Brokers for Stocks Under $100
    • Best Online Brokers for ETF Investing
    • Best Brokers for Mutual Funds
    • Best Online Brokers for Bonds
    • Best Blue Chip Stocks
    • Best Swing Trade Stocks
    • Stages of a Stock Market Bubble
    • Best Stock Investing and Trading Podcasts
    • Best Defensive Stocks to Invest

    Cryptocurrency

    ALL
    • Best Cryptocurrency Trading Courses
    • Best Cryptocurrency Brokers
    • Best Cryptocurrency Exchanges
    • Best Cryptocurrency Apps
    • Learn about Cryptocurrency
    • How To Earn Cryptocurrency
    • How to Trade Cryptocurrency
    • Best Cryptocurrencies
    • Best Crypto Trading Bots
    • Best Crypto Portfolio Trackers
    Menu
    • Best Cryptocurrency Trading Courses
    • Best Cryptocurrency Brokers
    • Best Cryptocurrency Exchanges
    • Best Cryptocurrency Apps
    • Learn about Cryptocurrency
    • How To Earn Cryptocurrency
    • How to Trade Cryptocurrency
    • Best Cryptocurrencies
    • Best Crypto Trading Bots
    • Best Crypto Portfolio Trackers
  • Health

    Health Conditions

    ALL
    • Macular Degeneration
    • Testosterone
    • Constipation
    • Hormonal Imbalance
    • Stomach Bloating
    • Sleeping Problems
    • Baldness
    • Lower Back Pain
    • Toenail Fungus
    • Mouth Sores
    • Eye Dark Circles
    • Stomach Bloating
    • Headaches
    • Face Acne
    Menu
    • Macular Degeneration
    • Testosterone
    • Constipation
    • Hormonal Imbalance
    • Stomach Bloating
    • Sleeping Problems
    • Baldness
    • Lower Back Pain
    • Toenail Fungus
    • Mouth Sores
    • Eye Dark Circles
    • Stomach Bloating
    • Headaches
    • Face Acne

    Product Reviews

    ALL
    • Diet & Weightloss
    • Exercise and Fitness
    • Beauty and Skin
    • Hair and Nails
    • Strength Training
    • Yoga
    • Dietary Supplements
    • Over-40 Supplements
    • Sexual Health
    • Dental Health
    • Men’s Health
    • Women’s Health
    • Sleep and Dreams
    • Best Weight loss Supplements
    • Best Fat Burner Supplements
    • Best Hair Growth Supplements
    • Best Vision Supplements
    • Best Memory Supplements
    • Best Natural Testosterone Supplements
    Menu
    • Diet & Weightloss
    • Exercise and Fitness
    • Beauty and Skin
    • Hair and Nails
    • Strength Training
    • Yoga
    • Dietary Supplements
    • Over-40 Supplements
    • Sexual Health
    • Dental Health
    • Men’s Health
    • Women’s Health
    • Sleep and Dreams
    • Best Weight loss Supplements
    • Best Fat Burner Supplements
    • Best Hair Growth Supplements
    • Best Vision Supplements
    • Best Memory Supplements
    • Best Natural Testosterone Supplements
  • Relationship

    Blogs and Tips

    ALL
    • Females in Relationship
    • Men in Relationship
    • Dating Tips
    • Finding yourself
    • Marriage Tips
    • Love
    Menu
    • Females in Relationship
    • Men in Relationship
    • Dating Tips
    • Finding yourself
    • Marriage Tips
    • Love

    Dating Guides

    ALL
    • Best Catholic Dating Sites and Apps
    • Best Christian Dating Sites
    • Best Pagan Dating Sites and Apps
    • Best Teen Dating Sites and Apps
    • Best Dating Apps for College Students
    • Asian Dating Guide
    • Japanese Dating Guide
    • Filipina Dating Guide
    • Indian Dating Guide
    • Black Dating Guide
    • Russian Dating Guide
    • Best Free Trucker Dating Sites and Apps
    • Best Dating Sites and Apps for Marriage
    • Best Free Crossdresser Dating Sites and Apps
    • Best German Dating Sites
    Menu
    • Best Catholic Dating Sites and Apps
    • Best Christian Dating Sites
    • Best Pagan Dating Sites and Apps
    • Best Teen Dating Sites and Apps
    • Best Dating Apps for College Students
    • Asian Dating Guide
    • Japanese Dating Guide
    • Filipina Dating Guide
    • Indian Dating Guide
    • Black Dating Guide
    • Russian Dating Guide
    • Best Free Trucker Dating Sites and Apps
    • Best Dating Sites and Apps for Marriage
    • Best Free Crossdresser Dating Sites and Apps
    • Best German Dating Sites
  • Trading School

5 Simple Ways to Pay Off College Debt Faster

Written and Published by Kayla Matthews on October 9, 2017 - Reviewed by Dumb Little Man

 5 Simple Ways to Pay Off College Debt Faster
College Money
by Kayla Matthews October 9, 2017

If you have a massive debt on your student loans, you’re not alone. Many people do.

The standard repayment period for student loan debt is 10 years. That means you will be spending a chunk of your monthly income to repay your student loans for a decade.

If you apply for a program based on your income, it is possible to be approved for a lower monthly amount and a longer loan term. An income-based program can help you if you’re finding it a challenge to make minimum monthly payments. Take note that it can make your monthly payments longer.

For many people, the 10-year repayment period is a long exercise in denial. Paying their monthly student loans means they may not be able to save for a house, buy a new car or take a nice vacation. We only have so much disposable income and if college debt repayment is part of your monthly budget, it can effectively eliminate most of your spending money. You’ll have a hard time gaining financial freedom.

One solution is to repay your college debt more quickly. Once you no longer have debts to repay, you’ll have money to pay for other things. It can become the seedbed for your first house, raising a family, buying a new car or traveling to Europe.

How can you pay college debt off more quickly? Here are five simple steps to consider.

Pay More Than the Monthly Minimum

This is probably the best way to pay off student loans faster.

You can pay off your student loan debt quicker than 10 years by raising the amount you pay every month. Any extra amount you can pay goes toward the principal, not the interest. Lowering the principal will decrease the amount of interest you pay over the life of the loan.

If you can pay $75 per month more on a $10,000 student loan with a 7 percent interest rate, for example, you can save almost $700 over the loan’s life.

Some loans do charge a penalty for prepayment, so be sure to check with your lender. It’s also a good idea to double-check that any amount above the minimum will go toward the principal. Most loans do, but you want to avoid surprises by knowing what your lender’s policies are.

Re-Evaluate Your Repayment Methods if You Have Multiple Sources of Debt

Many people simply pay whatever minimum is owed on every debt they have, whether it’s a credit card, car loan or student loan. However, there are methods to manage your debt so your overall burden is removed more quickly.

The first method is called stacking or laddering. In stacking, you sit down with every debt you have, read the paperwork, and find out what the interest rate is. Then, you prioritize the debt with the highest interest rate. The higher the rate is, of course, the more money you are paying both every month and over the loan’s life. The idea behind stacking is to reduce the debt costing you the most the fastest. It ends up costing you less.

Say you have a Visa credit card with $600 at 12%, a department store credit card with $300 at 11% and a student loan of $10,000 at 7%. If you have $20 extra per month, you’d put it toward the credit card. Once you are free of credit card debt, you then put the $20 extra toward the student loan.

The second method is called snowballing. With this, you place any extra money toward the debt with the lowest dollar amount, ignoring the interest rates. In the example given above, you’d pay your extra $20 for the $300 department store card. Once fully paid, you can add the $20 to your Visa card repayment.

The idea behind snowballing is that you can pay off smaller amounts of debt more quickly and that it provides psychological impetus to keep going.

Get a Higher-Paying Job or a Raise

One of the best ways to pay any debt faster is to increase the amount of money you earn. The more money you have coming in, the more easily you can utilize the first two methods.

One of the best ways to get a job with a higher salary is to find a high-paying career with low-cost degrees. You can be trained as a medical biller or electrician, for example, at a relatively low cost and be paid more in your first job out.

student loans

Any raise you receive in your current job can be used to raise the amount of your student loan payment. If you don’t want to put all of your raise toward a student loan payment, just allot a portion of it.

Consolidate and Refinance Your Loans

If you have student loan debts from several different providers, you may be able to pay less per month if you consolidate the loans. You need to apply for loan consolidation and a repayment plan.

If your student loans have a high-interest rate, apply for a loan consolidation with a lower interest rate. The best sources for refinancing and consolidation are often nontraditional lenders with digital platforms, such as Sofi, rather than banks. You will have to have an excellent credit score to qualify.

sofi student loan

Use Any Windfalls to Pay Down Student Debt

A windfall is any money you weren’t expecting. An aunt dies and leaves you money in her will. You get an unexpectedly high tax return. Your company gives out bonuses.

Again, any money applied to the principal reduces the amount of interest you’ll have to pay. That, in turn, lowers the amount you pay over the life of the loan. So, putting all or some of your windfall money toward student loan debt will help you pay it off more quickly.

These five methods are proven strategies for paying off your college debt faster. The faster you pay it off, the more you can spend on other things and save money for the future.

What’s the best way to pay off student loans for you?

Like this Article? Subscribe to Our Feed!

Author: Kayla Matthews

Senior writer @makeuseof. Bylines on @theweek, @motherboard, @technobuffalo and @venturebeat. Interested in personal and professional development and continued self-improvement.

  • Web
  • |
  • Twitter
  • |
  • Facebook
  • |
  • LinkedIn
  • |
  • More Posts(6)

Share This:

  • 0
    Facebook
  • 0
    Twitter
  • 0
    Linkedin
  • 0
    Email
Previous post
Next post

FOREX REVIEWS

Get daily tips and tricks for making your best home.
Follow us :
Instagram Pinterest Facebook Twitter
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Menu
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Menu
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Menu
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Get daily tips and tricks from Dumblittleman!
Your subscription could not be saved. Please try again.
Success! You are now a Dumb Little Man! :)
Follow us :
Instagram Pinterest Facebook Twitter
Browse
  • Business
  • Money
  • Relationships
  • Health</