MoneyPhile

Students who are looking for ways for paying off student loans may end up frustrated when it seems like they can not pay off their debts fast enough. Whether it is because they cannot get a paying job right after graduation that pays enough for them to make monthly payments or they simply have too many debts on their hands, paying off debts is something one needs to do in order to avoid ridiculously high interest rates later on. There are smart and practical ways to reduce debts. Some may include the help of consolidation companies and financial managers, but most just require plain common sense.

List down priorities, with paying off debts as the highest priority.
The most common problem of most students is that they often put paying off debts in the back burner as they enjoy life after college, only to realize that paying these debts off may not be as easy as they had anticipated. Students taking out student loans should plan about paying off the loans the moment they take the loans out. Prioritizing debt payment may mean putting up an account where a portion of the salary goes  so that it will not be spent on other needs. A few dollars saved each week while still a student can grow to become a substantial amount after a few years, just in time for the debts to be paid. A good source for practical tips in managing money for those facing a large amount of debt is the book “Totally Debt Free Living” by Greg Martin, available on Clickbank.com. The book teaches readers about the importance of a good credit score, and how to keep and build a credit history that will make lending companies proud. The book also hands out simple and easy tips for managing personal finance, from tips on credit cards loans to debt consolidation.

Look for creative ways to earn more money or lessen debt.
Getting another job or doing a garage sale can add a few hundred dollars which can be a lot when paying off debts. Some people take part-time jobs to add more cash. This is a very practical option for fresh graduates,  since most entry level jobs pay barely enough to pay the bills. Freelancing is a good way to earn money on the side. With the number of jobs one can do online, one can easily hold a regular job during the day and earn more money online at night. Although this may seem a bit far-fetched to most people, joining the military can help students pay off their debts. The military will handle the payment for a portion of the loan depending on the field and the major of the debtor. A good example is paying off student loans from law school by serving a few years as a lawyer in the military. According to the Amazon best seller “Live Debt-Free: How to Quickly Pay Off Your Credit Cards, Personal Loans, and Mortgages-And Build Real Wealth Today!” by Ted Carroll, these and other ways to generate more income can help a long way in paying off debts.

Live within or below the means.
Paying off student loans means that one needs to restrict spending on the basics. Living within the basics is one of the best ways to save more money in order to pay off debts. Cutting back on frivolous buys and limiting dinners or lunches out can help generate savings. This can be done successfully by making a weekly or monthly budget. Some have resorted to living like college students even two or three years after graduation, living on ramen noodles and using coupons for a couple of weeks just to pay off their debts. Although these ways may seem extreme, they are very effective at generating a lot of savings for paying college loans.

Read loan documents carefully.
In some cases, there are conditions which allow students to repay debts through other means. For example, they can choose to work on the field for a number of years or work in low income areas. A review of these conditions may just allow students to repay their student loans without having to fork over a very large amount of money.

Consolidate wisely.
One can choose to consolidate loans, which allows the borrower to fuse various loans into one to make payments easier. However, it is very important to choose which loans are chosen for consolidation. There are loans which already have very forgiving payment options on their own, but these benefits could be lost if they are consolidated. The book “Zero Debt for College Grads: From Student Loans to Financial Freedom” by Lynnette Khalfani-Cox offers other wise tips for consolidating student  loans and is sold on Amazon.

Paying off student loans is manageable when started at the soonest time possible. One needs to make certain sacrifices if one needs to pay off loans on time. With these tips, one can enjoy the rewards of a life after college that is unencumbered by hefty students loans.

Recommended Reading:

“Live Debt-Free: How to Quickly Pay Off Your Credit Cards, Personal Loans, and Mortgages-And Build Real Wealth Today!” by Ted Carroll

“Totally Debt Free Living” by Greg Martin

“Zero Debt for College Grads: From Student Loans to Financial Freedom” by Lynnette Khalfani-Cox