7 Tips to Get Ahead in Paying Off Your Personal Loans – Part 1
For every student in the country, a time comes when they have to face graduation, one of the most exciting times in their lives, but also one of the most stressful ones. The reason for this is that once graduated, most of them will have to start repaying the different student and personal loans they incurred over the past years in order to fund their studies. In our current times, millions of recently graduated students are struggling every day with debt, which is why a careful planning of one’s student or personal loan repayments as soon as graduating can be so essential for their finances later on in life.
Because of all the financial trouble that most students face student and personal loan debt has even surpassed credit card debt in recent years, which is why, if not organized properly, you can take years to repay those important personal loans.
Let’s take a look at a firsthand account of how much better things can be if you start managing your money and save for repaying all your student and personal loans on time or even earlier than expected.
Fo this, al you have to do is carefully consider these tips and strategies, so you can be ready to have a leg up in your personal loan repayments:
1. Part-time jobs are your friend
While this tip might be common sense for most of you, there is a surprising amount of students that still use their student and personal loans to pay for their entertainment and other recreational activities while at school. To avoid this, the most convenient practical thing you can do is to get a part-time job to earn the necessary income to afford those things.
If you do this, you will manage to have at least some loan money in the bank by the time you graduate, which will come extremely handy at the time. This savings cushion, in addition to whatever you can save during your six-month grace period for your personal loan will set you up with the right foot when your first repayments are due. So think carefully and consider by all means getting a part-time job while you are still at school.
2. Start budgeting
From the very first day you start school, make sure to track every single expense you make during the course of a month or two. Once you have that information, you will be able to sit down and consider all the expenses on things you could have lived without during that month. With that new, purged list in hand, you will then be able to create a new one of the thing you just need.
Using that new list, you will notice that your budget for the month decreases dramatically, allowing you to save substantial amounts every month and be able to repay your personal loans and student loans quicker as a result.
3. Turn your monthly personal loan repayments into bi-weekly payments instead
Let’s say you have a set amount that you have to repay every month for your personal loan or student loan that also includes interest. Instead of repaying it every month, you can talk to your bank and reprogram it for by-weekly installments instead to then save more in interest along the life of your personal loan. If you have never heard of this option, make sure to ask your bank or lender, since most of them have those. In most cases, sticking to that by-weekly payment cycle for a year can be equal to saving an entire month of personal loan repayments, which is definitely a huge amount.
That is it for today. Stay tuned for tomorrow’s entry to learn about the remaining fours tips and strategies to be ready to repay your personal loans and student loans on time.