According to recent studies the average American college graduate student has accumulated at least $30,000 in student loans. That’s a pretty huge sum even for today’s economy and adjusted for inflation! However, most young people who desperately want a college education have no choice but to take these student loans in order to get a degree. Okay, given the fact that there’s very little you can do to avoid it, surely there is a way to shake it off after you’ve graduated, right? Well, it’s a good thing that you’re reading this, because yes, there is a way to pay off your student loans quickly and efficiently.
So, without further adieu here are the 5 strategies that you can try for yourself and be financially free in 3 – 5 years time.
1. Work on the Sidelines
It’s not enough to have just one job if you want to settle tens of thousands of debt in the form of student loans and you have to find part time jobs to help you earn $200 – $300 each week. While you’d want to stay focused on your career, don’t forget about your old debts. If you’ll do jobs on the sidelines, you’ll have extra few hundred dollars to put in your debt and pay it off slowly. Many students now sign up for online writing jobs even before they’ve graduated as they want to cut their debt in half by the time they will. Moreover, you’ll gain experience that you can use in your job later on.
2. Learn to Negotiate
It’s okay to ask for a higher than normal starting salary even if you’re a newbie just as long as you can substantiate your negotiation with facts. For instance, you may be more skilled than other employees in the company, then this should be your ace to get $1,000 more than what employees are being paid under normal circumstances! Also you’ll need to research well on how to negotiate your salary or a raise; otherwise it might cause you to lose your job all together.
3. Allocate Funds to Pay your Debt
Now that you’ve got something good going on with your job and other earnings, you can start setting money aside each month to pay off your student loans. If you’ll allocate $500 every month to pay your debt, then you should be able to pay $30,000 of your debt in 5 years. Raise the bar a little higher and you’ll get rid of your debt perhaps even sooner (assuming you have a much bigger debt than this figure).
4. Set your Priorities Straight (Cutting Down on Expenses)
You may have heard this phrase dozens of times in your life, but it will never mean more to you than now, because it will help you save for your student loans and clear it faster. So think about your daily, weekly and monthly expenses, list them all down, ask yourself which items you need to stop buying or buy lesser of, think of ways you can save; and then implement your plan. Normally it should help you save around $150 – $900 a month which is a big deal considering your current situation.
5. Stay Motivated
Your most likely adversary to your mission is your own mind. Therefore you need to stay focused on your goals and your goals are to clear your student loans debt and to start a new life afterwards. You can get distracted or blindsided by things that will come into your life, but remember…you will always be in control. So whatever it is that may catch your attention, don’t stay too long to uncover whatever mystery that person or object holds. Once you’ve paid your student loans though, then you can explore as much as you like.
Whether you’re still in college or have already graduated, these 5 strategies can work towards your favor and effectively help you eradicate your student loans and other debts. Drop your comments below and share your opinion regarding this personal finance idea.