Paying Off Student Loans
Student loans have reached the 1.4 trillion-dollar mark. It’s a debt that can set young adults back financially for decades. Decades!
Hi, this is Chuck Bentley with My Money Life from Crown.
Many of our listeners or their children are burdened with student loan debt. The key to paying it off quickly is to live frugally. I’m going to offer you some practical tips that require diligent planning and some sacrificing today to experience freedom tomorrow. Ready? Let’s go!
First, determine when you want to have those loans paid off. Is it a year from graduation? Before your wedding? Christmas 2020? Unless you set a goal, you’ll be paying a long time and delaying financial progress. Set a payoff date and strategically aim for it!
Choosing to live at home or with a relative in exchange for labor can save you thousands of dollars upon graduation from college. I know several families who have allowed their adult children to live at home while working professionally with the intention of paying off their debt.
If that’s not possible, find like-minded roommates with whom you can share living expenses.
If your friends eat at the nicest restaurants, buy the nicest things, and drive the nicest cars, you’ll be tempted to spend the same way. You need friends who will support your frugality.
Avoid materialism and the need to have the newest and best. Choose to stay off social media so you can avoid ads and the comparison trap. Set boundaries and challenge yourself for delaying purchases.
Skip the little things – they add up. Your morning Starbucks run is only $5 but a year of that is $1825. Make your own coffee! Skip the movie theatre, borrow DVDs, or use the library. Always make a list before you go grocery shopping, and never go when you’re hungry!
Like Solomon said, A slack hand causes poverty, but the hand of the diligent makes rich.
If you want more practical help with your finances, call the Crown Helpline at 800-722-1976 or go online to find free resources at crown.org.