Five tips for paying off student loans
The bliss is unparalleled. You shake your university president’s hand as you triumphantly grasp the degree case that will forever hold the glorious diploma that states that you have earned your bachelor’s degree. It may have taken four years of agonizing study and sleepless nights, but you have finally finished the educational requirements that will open the doors for you get hired for your dream career. As you step foot off the stage, however, the cumbersome burden of student debt comes to mind. You dreadfully begin to imagine how long that it will take to pay off the tens of thousands of dollars that you borrowed to get through school.
This may or may not be your story, but it certainly is the story for a growing number of Americans. Your story may not be as extreme, but no matter the amount, student debt is an annoying bill that can take years to pay off. There are several ways, to pay off student loans, but it is always wise to start small. What are five simple ways that one can use to pay off his or her student loans?
#1 Budget- Some individuals have a difficult time systematizing living expenses. It is wise to keep track of every penny that you spend. Once you see what you tend to waste money on, it is possible to evaluate your strengths and weaknesses. For example, one might consider herself to be a frugal person since she seldom buys clothes or accessories, but she fails to notice that she buys two expensive gourmet coffees every day- that adds up.
#2 Psychological Motivation- There are a fun self-motivational ways to help you pay off student loans. Keep track of your debt and mark off the portion of the debt that you pay off. One such strategy is the thermometer method. Suppose that you owe $100,000.00 in student loans. Draw a thermometer and display it on your refrigerator or wall. For every $1,000.00 that you pay off, you get to fill in a segment of the thermometer. As an added bonus, perhaps you could reward yourself with a meal from a restaurant for every segment that you shade in.
#3 Create goals- Step two proposed a motivational plan, but it works best when used in conjunction with practical short-term goals that complete the long-term goal. This should also be included in the budget. Any goal is helpful, even if it is a small amount like $20.00 a week
#4 Ask, “Is a credit card right for me?”- One needs to honestly evaluate his or her ability to manage credit card debt. Credit cards can either be a useful tool for building up credit, or they can be a terrible curse that can ruin your financial health. If you cannot responsibly own and use a credit card, you may want to consider using only cash. Do not believe that you are an irresponsible person if you have a difficult time managing a credit card because this is something that many people struggle with
#5 Accountability- Find a mentor that can hold you accountable to your goals. Do not choose somebody that is flaky and inconsistent; the person you choose should care enough to regularly ask you how you are doing. Additionally, the person that you choose should be an ethical person that you can trust. Most people would not like it if somebody knew their financial information and divulged it to others.
Student debt may seem like an insurmountable obstacle, but that is certainly not the case. Paying off student loans is not easy; it will take persistence, dedication, focus, and planning. This goal can be accomplished if you simply create a plan and persist in following through. As Calvin Coolidge, the late American president, once said:
“Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘Press On’ has solved and always will solve the problems of the human race.”