As soon as you walk off the stage, move the tassel on your graduation hat, and partake in your school’s time-honored traditions that usher you into the workforce – ready or not – you quickly realize that all those student loans you’ve taken out are suddenly resting on your shoulders. That can be intimidating if you aren’t part of the seven percent of people who find a six-figure career. However, you don’t have to make millions to pay off your student loan debts quickly.
Debt-Free in 5 Years or Less
Here are a few tips for paying off those pesky student loan debts within the next five years:
- Develop a budget. Not any budget will do in this instance. You need to craft a very detailed and specific budget that designates every single dollar of income to a particular location. Whether it’s food, medical costs, childcare, or rent, it needs to go somewhere. Ideally, after you budget these expenses, you will have enough left over to put some toward your student loans.
- Stick to the budget. A budget is simply a piece of paper or an Excel spreadsheet. You must stick to it if it’s going to work. By following the basic principle of spending less than you earn, you can put yourself on the right track.
- Consider refinancing. Restructuring your loan can be a great way to obtain more favorable terms. There are plenty of ways to refinance, but take the time to study each and find one that fits with your budget.
With a little diligence and perseverance, you can pay off your student loans quickly and efficiently. Remember to develop a budget, stick to it, and look into refinancing.