69% of college students take out student loans for their education. Here are some ways to quickly pay off your student loans if you are a homeowner in Little Rock.
Stick to the Plan
If you started your career right our of college and you can fit the payments into your financial budget then start paying right away! Most student loan repayment periods are 10 years. A lot of people lower their payments or they refinance their loan but that could add another 20-25 years of repayment! I know that 10 years sounds like a long time, but it is way faster than 30 years! Most lenders offer options for biweekly payments as well. If you decide to do this you will end up paying an extra month every year which will shave off extra interest and time of repayment.
Take on a Second Job
Another way to quickly pay off your student loans is to take on a second job. This may seem obvious but if you are in a position where your primary employment can cover all of your month-to-month requirements, your second job income can go straight to your student loan balance. You will be trading your time for money (and freedom from debt) but it could be worth it! Apply at least half or ideally all of that money to your student loan balance to speed up repayment. This is important – make sure you communicate with your lender that you want the money paying the principal so they don’t apply it to the next payment instead. This will also decrease the overall interest you are accruing. If you do not want to commit to a second job with a schedule, you could pick up side gigs. There are online bulletin boards where people can post task that they need help with. It can be something as simple as going to make copies at FedEx or running to the store to get an item.
Sell Your Extra Stuff
Most of us have belongings laying around the house that we probably could live without. These items could hold some resale value! Take advantage of websites and apps that will let you list items for sale. Go through your closets and get rid of unneeded clothing or collectible items that may be worth some extra money. Have you considered selling your car and getting a more affordable one? Maybe a car with lower gas milage? You can also look to refinance your car loan to create lower payments.
Sell Your House
If you are a homeowner in Little Rock, the easiest and quickest way to pay off your student loans is to sell your house! By doing this you may be able to eliminate the entirety of the student loan debt. You can think of it as a short term sacrifice to create more financial freedom for your future. Downsizing now doesn’t mean you can’t upgrade later! You can also take advantage of the low-interest rates when you are looking for a loan for your new home. You can put thousands of dollars towards your student loans, or hopefully, pay off the balance in full, and find a different house to live in and save extra money with the lower interest rates on mortgages. When downsizing your home you will also experience other benefits such as lower cost on the energy and water bill. You will also save time by not having as much square footage to clean! I know we all would enjoy that 🙂