You’ve already graduated and left college. Now it’s time to leave your student debt behind and get on with life.
I’m sure we all agree that paying off student loans is a pain, but it’s necessary. Hanging onto debt for a long time can prevent you from seizing new financial opportunities until you’re in the clear.
Putting off payments with extensions will only cost you even more money and time in the long run. Tackling and eliminating it now, while you’re young and with less debt, can ensure that you have a much greater and financially secure future. Pay it off now and reap the benefits in the years to come.
So, instead of going off grid, imagine your life student-debt free – much sooner and faster than you imagined, with money sitting in your bank account. Once you pay off your student loan, the benefits explode. Then your money is free to be invested and applied toward all of your future goals and desires, such as buying a home, a new car, traveling, putting a child through college, increased 401(k) investments, a secure retirement with greater peace of mind and much more.
Sure, getting those paychecks in the real working world is exciting, until you realize that you have to make that dreaded monthly student loan payment. Yeah, it can feel like the gut-wrenching, student-loan-paying feeling will last forever, but it doesn’t have to.
You’re going to have to up your game and your student loan repayment strategy. Luckily, there is a terrific and highly effective strategy among the various student loan repayment options that can save you a bundle of money you’d normally pay the lender and shave years off the lifespan of your student loan. Another bonus: Done correctly, it’s short-term; not lifelong. It’s a student debt payoff option that’s one of the easiest and most effective strategies you can implement.
So, what is it? Pay more than your regular installment each month. It is one of the easiest ways to reduce your debt much faster. Simply add a little extra to your monthly payment. Make extra payments to principal, and you’ll reduce your loan amount and save on interest-bearing charges.
One easy way to do this is by making biweekly payments. Setting up automatic payments that coincide with your paychecks with this extra amount added in makes it easier for you – and harder for you to change your mind.
With biweekly payments, your regular monthly payment is cut in half. You pay that half every two weeks, which ultimately equals out to 13 payments per year instead of 12. By the end of a year you’ll have made one extra payment toward principal, which saves you a ton of money on interest you’d normally pay to the lender and reduce your time to student debt freedom.
Use the AutoPayPlus loan savings calculator to play with various student loan repayment options and extra payment scenarios to see just how much money you can save and how much time you can cut off your loan. For example, if you have a $25,000 student loan that’s payable over 10 years at a 6.8% interest rate, you’ll save $761 in interest — and you’ll pay off the loan 10 months sooner.
AutoPayPlus can help you pay down debt faster. Withdrawals from your account every other week fit conveniently with paychecks and your monthly budget, while an extra half payment twice a year toward principal reduces interest over the life of the loan. Please visit our website to learn more.