Best Debt Companys

162 Companies 3,264 Real Customer Reviews

Strategies to Help You Pay Your Student Debt Off Quickly

Posted By:  |  March 24, 2014  |  0 Comment(s)

While moving out into the workforce can be an exciting thing, any remaining student loan debt can definitely hasten the joy of finally finishing school. If you’re interested in getting the weight of a student loan off your shoulders sooner rather than later, here are some ways to speed up debt repayment.

Take Advantage of the Non-Repayment Period

With many student loans, there is a six-month non-repayment period following your graduation where interest will accrue on your loan but you won’t be expected to pay a minimum. However, instead of foregoing payments during this time, take advantage of it and make payments consistently so you can get in the habit of paying down your debt. While twenty or thirty dollars here and there might not seem like a lot, it can actually take months off of your debt repayment. Interest compounds quickly and it really adds up.

Bump Up Your Monthly Payments

Like many other types of loans or debt payments, it can be tempting to pay just the minimum every month. However, this means that you’ll have to pay more on your loan because of interest payments that are accruing on the total amount. Instead, make a promise to yourself to pay more than the minimum up to an amount that is manageable for you. As this means less interest accrued, putting a few more dollars down each month can have a significant impact on the total amount you end up paying and can mean you’ll be clear of your debt much sooner.

Be Strict With Your Budget

While the idea of making a budget is never popular, since it generally requires hemming in personal expenses and the money you use for fun, it’s very important to have one when paying off a loan. By having a budget, you’ll be able to discern what costs are necessary and which costs can be avoided, and this means more money goes towards paying down your debt. While you might think that you can stick to a plan without formalizing it, writing it down can actually make you aware of just how much you overspend. You might even be surprised by how much extra money it gives you each month.

Consider a Second Job

If you’ve studied your way through school and you’ve successfully moved into the workforce, getting another job can seem like a step back, but it can actually put you in a better financial position more quickly. As an extra job will give you some extra funds to play around with, it means you’ll be able to make higher monthly debt repayments and still have some extra funds to have fun with since you’ll be working so hard.

While the debt that goes along with being a student can be one of the most stressful parts of an education, there are ways to get rid of it more quickly. Whether you commit to more than the minimum payment or decide a second job is the way to go, there’s no reason you can’t put your debt behind you and move into your future much sooner than expected.

Poll

  • How important is it to you for a debt consolidation company to offer financial education resources?
  • Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
  • Negotiates with your creditors on your behalf.
  • Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
  • Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
  • Combines all your debts and creditors into one monthly payment.
  • Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
  • You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
  • Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
  • Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
  • Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
  • Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
  • Borrowers can receive funds from their loan within only a few days.

Recently Reviewed:

Trending Blog Post:

Want us to review a company?

If there is a debt company that you don't see on our site, and would like us to review, please contact us.

Real Reviews (yes they’re real)

With so many debt relief companies out there, and a lack of sites willing to bring you the HONEST breakdowns of each company, what source can you turn to for the real information you can trust?

We are dedicated to bringing the truth out, and rank debt relief companies as they should be. Through our investigation, and experience with each company, we rank each company, and bring you our honest, unbiased opinion. We also include authentic user reviews by past customers of each company that are moderated and verified.

Like many sites, we are compensated through affiliate relationships with each company we review, however all of our rankings are based on our 11-Point Ranking Criteria.

All reviews are subject to moderation and approval. Any reviews that may resemble false information, or competitors of another company will need to be verified by our staff before being approved and published. We reserve the right to approve or deny any reviews left on this site.