How to pay off your student loans fast
In this video, I walk you through the specific steps I used to pay off over $65k in student loans as well as shed consumer debt totaling over $72,500. If you’d like to hear more about the story, please also like and subscribe to my channel as well as listen in to my weekly new podcast, now available on iTunes, Google Podcasts, Stitcher, Breaker, PocketCasts, Anchor, and Radio Public. I share inspiring stories of women in business and discuss the relationship women have with money through interviews and personal stories.
Write it all down
Creating wealth starts by paying off your balances. No matter how high your income is if your debt exceeds your income your profitability decreases and the ability to take care of your expenses plummets. Start by taking a moment to write it all down. Do it on Google Sheets or grab my free printables in my free Money Master’s Challenge email course.
Determine the debt payoff strategy
There are two very common approaches to paying off your debt including debt avalanche (paying off from the highest to the lowest interest rate) and debt snowball ( paying off the lowest balance to highest balance). Each of these debt payoff strategies work, but you need to determine which one works best for you. Personally, I did a combination of both strategies, paying the highest interest rate account off first then doing the debt snowball approach on the remainder of accounts.
Call Your Student Loan Provider
Your student loan provider may offer different payment plans that you may be able to qualify for. Start by looking at each of your student loan provider’s website and then giving each of them a call. You miss 100% of the shots you don’t take, so it’s worth starting a conversation about potential changes to your monthly payment.
Ungroup your student loans
This is by far the best way for you to save money on your debt payoff strategy. This provides you with more opportunities to see the progress that each of your payments is making. Often, loans are grouped by similar disbursement dates. Commonly these grouped loans are federal student loans. When you call your student loan provider, ask if these can be ungrouped. This is an activity that is completely free. For reference, I did this with my loan provider called Navient, and there was no associated fee. Check with your loan provider to see if your loans are grouped and if you can ungroup them.
Enroll in automatic debit
Although this is a small savings amount, it is still important to consider what you can do to knock down the time you have towards paying back your student loans. Consider opening up a new bank account specifically for automatic debits, or even setting up a direct deposit going to a different bank account that you have limited online access to. I saved only about .25% interest rate reduction by enrolling in automatic debit, but in my opinion, it was worth it.
Make every effort to save
Making a decision to start paying off your student loans, helped me overcome the anxiety I had when I thought about money. Remember that your money can pay for what you want to do in life. It is a tool to help guide you to a much better life. Take time to review your budget and think of ways to slash other unnecessary expenses to start living the life you want.
Let me know if you have any questions below about paying off your student loans.