Is there really a guide on how to wipe out your student loan debt? Well, I think you should hear me out. If paying off your student loans feels kind of a world away or even worse, totally impossible, then you are on the right page. You can do it – you can clear off your student loan debts.
How to Wipe Student Loan Debt
Well, let’s set some expectations first. I really do not have a special magic trick or a type of life hack to help you get rid of it all in the space of 30 days flat. This is something that is not going to happen overnight, just like I didn’t grow overnight. It took quite a lot of patience to finally hit five feet, and then six inches.
By following the steps I will be listing, you can get on a fast track to getting off your student loan debt for good. The truth is paying off your student loan takes a lot of time, hard work and a lot of sacrifice, but it’s all doable. With that being said, below are some of the steps to follow through to wipe your student loan debts.
Get On a Budget
This very one is a game-changer. And if it is that you are not already practicing this, then now is the time to make a budget and then stick to it. A zero-based monthly budget as you should know will show you just exactly where it is your money is going and also where you can get to cut back on. That late-night dollar menu and beefy Fritos Burritos can really add up calorically as well as financially!
When you get to stick to a budget, you might even find “extra” money that you didn’t know you had, which is a better way to plan than just hoping to find $10 in your old windbreaker jacket way back from high school. And once you start throwing all of that extra money at your student loans each and every month, then you will start making progress in no time!
Find Your Payoff Date
You should check out our Student Loan Payoff Calculator, where you can get to enter your monthly payment, loan balance as well as the interest rate for each student loan that you have got. Also, you will get to see the date that you will pay off each loan if you keep making all of those minimum payments. You might not even like what you see at first, but you shouldn’t worry. Move on to point #3 to see what happens if it is that you get focused on paying more than the bare minimum.
Pay More than the Minimum Payment
You have probably heard about this one before. And if it is that you are only paying the minimum payment each and every month, then you are not getting anywhere fast. You just might not even be breaking even with the interest that you are piling up! You should know that by making larger payments, you will be able to attack the amount that you owe at a faster rate. Start playing around with that Student Loan Payoff Calculator in order to figure out just how fast you can pay off your loans simply by making extra payments.
Make Financial Sacrifices
Remember in the first step when I brought up sacrifice earlier? Just like saying no to late-night fast food? Here’s where it finally gets to come to play.
Take a look at your lifestyle. What extra stuff have you been doing or living with that you can actually do without? It’s time to say goodbye to the cable package. Bye to all those bougie subscription boxes. And maybe you should cut your housing cost in half simply by finding a roommate. Do you have a guest room in your house that is not getting much use these days? Rent that room out! You should just think of how quickly you could pay off your loans in the event that your housing costs were cut way down.
How about selling some junk you really don’t need anymore? Dig through all of your closet, garage, and even storage to see what it is that you could put on eBay, Facebook Marketplace, or even on Craigslist. Then, you should add up what you get to spend on eating out every week. Ditch the $7 oat milk lattes and then proceed to brew your own coffee at home.
Eat your leftovers or meal prep for the week rather than spending $10–20 on lunch. You also can get savvy at the grocery store. Trust me—there are plenty of creative ways to save. But it all kicks off with being willing to make some temporary sacrifices for some long-term gains.