7 Tips to Get Ahead in Paying Off Your Personal Loans – Part 2
In our past entry, we started discussing how millions of students across the country come out of school excited but also stressed, since they have to start facing their personal loan or student loan repayments. So, in order to help both current students and recently graduated ones to face their debts properly after they come out of school, we started looking at some tips and strategies to do so that allows them to be in control of their student and personal loans.
Let’s continue looking at the remaining four out of seven tips to do this.
4. Apply all the extra funds you receive towards your personal loan
During the time you repay your student and personal loans, there will surely be times when you get some extra money, like work bonuses, birthday money and such. What you can do in these situations to help you in your personal loan repayments is to save as much of this money as you can to pay down your student and personal loans. This is a lot harder than it looks though, since you will have to fight the temptation to spend that money in little things over the weeks. If you succeed saving, you will have a decent chunk of cash that will come in very handy during the end of the month when you have to repay your personal loans.
5. Always claim student loans on your taxes
One of the advantages of being recently graduated is that, while the job market is not that easy, not being able to score a high-paying job comes with a few benefits for those who have personal loans to repay. The main one of these comes with tax payments.
If you happen to make less than $60,000 a year in your job after you graduate (highly unlikely for recent graduates to earn that much), you can then deduct your student loan interest to an amount of up to $2,500 per year. It definitely feels great getting some fund back from the government that you can apply towards your student or personal loan debts.
6. Take advantage of your bank’s auto-pay service
There are a few banks and lenders out there that will offer to lower your interest rates for your student and personal loans if you sign up for auto-pay. This is due to the fact that from then onwards, all your personal loan payments will be repaid on time, which is invaluable for them. Also, don’t expect your lender or bank to offer this to you, instead, actively check with them to see if this is possible for you or if it apples to your particular personal loan or student loan.
7. Ask help from your friends and family so they can hold you accountable
When you exit college, having the weight of paying back a student or personal loan in the next few months and years can mean a lot of pressure for bearing alone. In addition to that, if you can;t manage to get a full-time job, you can start to become very stressed by the time of the month when your personal loan installment is due.
To make things more tolerable for you, feel free to have a kind of a support team composed of family and friends that know about your debt and that can help keep you and your expenses in check. For this, let them know about your debt and that you intend to repay your personal loan as soon as possible. If they are ok with that, not only will they understand you, but they will also help you by, for example, not going out for an expensive dinner and instead staying home for a simple movie.
All in all, what you need to know is that, when it comes to repaying your personal loans and student loans, even a single dollar matters, since these small amounts always build up on time.