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Three effective student loan hacks



Student loans are perhaps the biggest burden that you’ll want to get rid of first in your 20s. It can be found at the top of the financial goals anyone in their 20s might have.  The burden only gets heavier when the people are unable to find an adequate or dependable job – and given the current unemployment crisis, this is a common situation.

1.       PROGRAMMED PAYMENTS

This is perhaps the easiest way to trick yourself into paying off the debt. Have your bank take automatic payments to be withdrawn straight from your bank account, and put it on the loan. This is not only a convenient and secure method, but also ensures that you pay the loan off in time, without accumulating further interest.

2.       PLANNED SAVINGS

Follow a similar strategy to your savings as well. Remember the more you save, the more you will have to pay against a loan especially at times when you might not be able to. Set up automatic deposits, and ensure that a particular amount of your pay check is regularly credited to a savings account. This makes what you owe, a little less in the long run.

It also protects the money from your exploitative spending habits.

3.        SPEEDY PAYMENTS

Your loan company probably asks for a set amount of money each month. This doesn’t mean you can’t or shouldn’t pay more!

 Throw in extra payments every now and then. 

If you get an increment at your job or a lush promotion, start doubling your payments altogether – this helps to reduce the principle quickly.

This might sound a little tricky, but tighten your budget in a few ways, especially by cutting down on your ‘wants – you will be surprised at how much you’ll be able to save to pay off the loan.

These simple yet clever ways will surely get you off of the pressurising student loan debt, and empowering you to look beyond the debt and plan on building your wealth.

After all, the 20s is a golden period for building a foundation of healthy financial principles, and the best way to get started is by getting rid of all the sick debt.

See Also: Get motivated to Save

 

Written by: BALAKARTHIGA.M