Practical ways to pay off your student loans

The idea of paying back student loans continues to cause much stress among graduates, with payment plans often dragging on for years. But you don’t have to enslaved by repayments, provided you follow the practical steps outlined below. 

Image source: debt.com

One thing to keep in mind is that it’s perfectly fine to have less money now and pay off these loans sooner. Given your career choices and the decision to, say, start a family down the line, you’d probably have more headaches from arising new expenses in the future if you delay payments. 

One pragmatic tip is to set up auto-pay for your loans. This goes a long way toward repaying faster and lowering your interest rates by about .25 percent. If your bank account gets deducted a set amount by default monthly, you’ll start to have the mindset that it’s a mandatory expense instead of money you can still spend. 

Another scheme you can plan is to make two payments monthly. This doesn’t necessarily mean making double payments but dividing the total in two, based on your 15th and 30th salary periods. This would make less dent in your regular earnings, and you’d notice the deductions less. 

You can likewise opt to run a small business on the side or commit to doing a little overtime work at your current day job. Just make sure that you’re keen on using the extra income solely for student loan repayment. Doing this early on after schooling is ideal before other quality-of-life expenses come up and become necessary. 

Lastly, opt to carpool to work instead. The amount you save on gas monthly can then be funneled to debt repayment. Fuel expenses will get cut in half, just like deciding on using your car alternatingly throughout the work week. 

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Performance Settlement offers a tailored, trustworthy debt resolution service that helps clients consolidate and pay off debts for much less than amounts originally owed. Visit this blogfor similar reads.

Debt Stress: A Real Issue

Debt can be felt in more ways than financial. For a lot of people, debt introduces problems like stress and anxiety. And suffering from such conditions can affect other people like children, friends, and relatives. Debt stress is a real wellness issue and here are some ways to manage it.

Image source: debt.org 

Debt stress can manifest in many ways such as restlessness, sleep deprivation, depression, and anxiety. In some cases, this resulted in serious health conditions such as migraines, heart diseases, and a weakening of the immune system. 

All these factors can affect one’s work and ultimately, their ability to pay off these debts. So be wary of these signs. If not taken seriously, debt stress can bring forth further complications such as fear of paying bills, acting in denial of one’s situation, or downright getting mad at life or other people. 

Regardless if it’s a stack of credit card or medical bills, debt problems should not be handled alone. Talking to other people like family and friends can help reduce tension. Opening up with the topic in mind may prove difficult, but being open to financial and emotional situations can clear things up. They may even help come up with solutions that can help. 

When in debt, always try to stay positive regardless if the situation was an error in judgment or due to unforeseen circumstances. Tracking your progress is a sure way of motivating yourself into feeling better about your predicament. 

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Performance Settlement assists its clients in consolidating their debts and paying them off for less than what they originally owe through third-party trusts accounts. For more on Performance Settlement and its services, click here.