How to Pay Off Your Student Loans Without Tearing Yourself Apart?

17.03.2022

When you’re in university, taking out student loans so you can get by is often a necessity. However, paying them off later is a real pain in the ass. Student loan interest rates are far higher than other types of loans, and the debt will grow and grow the longer you pay it off. With coronavirus, the world’s current economic situation also doesn’t make it easier to find a decent job so you can’t start paying off your student loans as soon as school finishes. So, how can we start paying off the debt without tearing ourselves apart?

Know how much you have to pay

The first thing to do is to rip off the band-aid and find out how much debt you are actually in. At first you’ll probably feel a bit dizzy, but don’t be scared, we’ll make a plan together. Try to fully get your head around the repayment terms for your loan. Get an extra copy to read them again later. You need to learn your interest rate and instalment length. The higher the interest rate, the more money you’ll have to pay and the longer it will take.

Create a budget

If you don’t have one already, create a budget for yourself now! Include your actual income and expenses for each month. This will help you to understand how much money you’re spending and how much money you’ll have at the end of the month to pay off your loan. Any extra money can be used for creating an emergency fund or used for an extra payment on your loan.

Try to earn extra money

You probably won’t be one of those lucky enough to find a job with a competitive salary straight after school, but you can find a job with an entry-level salary. While you’re a 9-5er during the day, perhaps you can do some extra work for a bit more cash. If you can make a little extra income each month, you’ll blow away that irritating student loan in no time. For other side hustles, consider trading, selling your unused stuff, finding a part time job or freelancing jobs like web designing.

Cut your expenses

Check your budget and pinpoint any unnecessary expenses. We can always something to cut out. You might not have even realized how much money you were spending on nonsense things. Even if you can cut a little off your expenses each month, it’s better than nothing.

Always try to pay more

If you can, you should always go further and pay a little more in every payment to speed up the repayment process. Then you’ll see that loan that you happily spent away in your student years disappear in no time.

All this may sound very hard, but it doesn’t have to be. I hope I’ve given you some ideas for a fresh new path to get rid of that loan nightmare dragging you down. For more suggestions and life hacks, follow us on social media and share our article with your friends and family.