There’s no denying that student loans for many people are a necessary part of going to college but they can literally become a burden if they are not paid off in a timely manner.
If you’re struggling with student loan debt and want to buy a house in the near future here’s a simple plan which you can use to pay off your student loan debt.
#1 – Treat Your Student Loan like A Mortgage Loan
One “golden rule” when it comes to debt repayment is that you should never just pay the minimum payment when you can always pay more.
For example: Let’s say that you have a $25,000 student loan with a 10 year repayment. If your interest rate is 6.8 percent your payment would be about $300 per month, but if you paid $700 per month you would be able to pay off your student loan in just three years.
#2 – Have Money Withdrawn To Your Savings Automatically
Another great way to pay off your student loans quicker is to have money withdrawn from your direct deposit each payday and have that money put into your savings account.
By doing this you will be able to save a sizeable amount each year and then make a large payment towards your student loan or you could invest the money into a mutual fund then take the money from your mutual fund and pay down your student loans.
#3 – Still In College? Why Not Work Part Time
Last of all, but most important, if you’re still in college why not work part time?
If you were able to work part time while going to college you could save the income from your job and possibly pay off your student loan debt once you graduate (or pay towards tuition while you’re in school)
Working part time during college will not only help you to save money it will also help you to build industry specific knowledge and establish the discipline of saving money which you will need later on in life.
For more tips on how to pay off your student loan debt, or to view the latest Orange County homes for sale, contact Fred Sed & Associates today by calling us at (949) 272-0125.