There are a lot of people who have student loan balances hanging over their heads. Are you one of these people? Here are some ways to quickly pay off your student loans if you are a homeowner in COLUMBIA.
Stick to the Plan
If you can afford the original repayment plan, do it! Most student loan repayment periods are 10 years. If you try to lower your payment or refinance, this could add another 20-25 years of repayment! 10 years doesn’t sound very quick in general, but it is way faster than 30 years! You may also want to consider making biweekly payments. You will end up paying an extra month every year which will shave off extra interest and time of repayment.
When it comes to repaying student loans, sticking with the original repayment plan can often be the best option if you can afford it. Most standard repayment plans are set over a 10-year period, which, while not short, is significantly quicker than extending the loan term through refinancing or lower payment plans. Refinancing or opting for an income-driven repayment plan might reduce your monthly payment, but it often comes at the cost of a much longer repayment period, sometimes extending up to 20-25 years. This extended time frame can result in paying substantially more in interest over the life of the loan, ultimately costing you more money.
Another strategy to consider is making biweekly payments instead of monthly ones. By paying half of your monthly payment every two weeks, you end up making 26 half-payments over the course of a year, which is equivalent to 13 full monthly payments. This extra payment each year can significantly reduce the principal balance more quickly, thereby decreasing the amount of interest accrued. Not only does this approach help in shaving off extra time from the repayment period, but it also reduces the total interest paid, allowing you to pay off your student loans faster and more efficiently.
Take on a Second Job
Another way to quickly pay off your student loans is to take on a second job. Since your current job can cover all of the necessities now, your second job income can go straight to your student loan balance. You may lose some of your spare time, but just think of your financial freedom! Apply at least half or ideally all of that money to your student loan balance to speed up repayment. Make sure you communicate with your lender that you want the money applied to the principal so they don’t apply it to the next payment instead. This will also lower the overall interest paid of your loan since you are taking big chunks out of the balance. If you do not want to commit to a second job with a schedule, you could pick up side gigs. There are online bulletin boards where people can post random odd jobs they need help with and you can put that extra cash straight towards your balance. This will be a lot of work, but the benefits would be nice.
Another effective way to accelerate the repayment of your student loans is to take on a second job. If your current employment covers all your basic necessities, the income from a second job can be directed entirely toward your student loan balance. Although this might reduce your free time, the trade-off is the potential for faster financial freedom. By allocating at least half, or ideally all, of your additional income to your student loans, you can significantly speed up the repayment process. It’s crucial to inform your lender that you want these extra payments applied directly to the principal balance, rather than as advance payments on future installments. This approach helps reduce the overall interest paid, as you’re decreasing the principal balance more rapidly.
If committing to a second job with a fixed schedule isn’t appealing, consider picking up side gigs. Online platforms and bulletin boards often have listings for various odd jobs that people need assistance with. You can use the extra cash earned from these side gigs to pay down your loan balance. While this might require more effort and hustle, the long-term benefits of paying off your loans sooner and saving on interest can be well worth it. The extra work will pay off, providing you with greater financial flexibility and peace of mind once your loans are fully repaid.
Sell Your Extra Stuff
Take advantage of online yard sale-type apps and list your extra stuff for sale. Go through your closets and get rid of unneeded clothing or collectible items that may be worth some extra money. Maybe consider selling your car to get a more affordable one with better gas mileage or refinancing your current auto loan to have a lower payment each month. You could also hold garage sales as often as your community allows and ask friends and family for their unwanted belongings to add to your sale.
Another practical way to accelerate the repayment of your student loans is by utilizing online yard sale apps to sell items you no longer need. Start by going through your closets and identifying clothing, collectibles, or other possessions that could fetch some extra cash. Selling these items can provide a quick influx of money, which can then be directed toward paying down your loan balance. Additionally, consider making larger changes, such as selling your car for a more affordable one with better gas mileage. Alternatively, refinancing your current auto loan for a lower monthly payment can free up more funds for student loan payments.
Holding garage sales is another effective method to declutter and make money. You can host these sales as frequently as your community guidelines allow, and even ask friends and family members if they have any items they would like to contribute. This not only increases the variety and quantity of items for sale but also helps in generating more revenue. By taking these steps, you can gather extra funds to pay off your student loans faster, reduce the overall interest paid, and move closer to financial freedom.
Sell Your House
If you are a homeowner in COLUMBIA, the easiest and quickest way to pay off your student loans with a big chunk of money is to sell your house! You may even be able to negotiate with the buyer to pay a majority of the fees to have more money to put towards your balance. Take into consideration downsizing now to pay off those student loans and have more money for the future. You can also take advantage of the low interest rates when you are looking for a loan for your new home. You can put thousands of dollars towards your student loans, or hopefully, pay off the balance in full, and find a different house to live in, and save extra money with the lower interest rates on mortgages. You will also save in some unexpected places, like the electric and water bills and the actual time it takes to clean your house. You might be able to find a smaller, more energy-efficient home closer to your work, which will save you time and gas money every day!