This is a guest post by David over at millenialpersonalfinance.com.
It is no surprise that student loan debt controls the lives of many borrowers. In fact, many of the borrowers who did take out a student loan did not fully understand the position it would put them in when they graduate. I know I did not, but I still have to pay the amount back.
I have decided that I do NOT want to be making student loan payments for the rest of my life, so I will be paying down my student loan debt aggressively. Yes, this does sound like a lot to do, but I know I can accomplish my goal if I simply put my mind to it. Below, I will talk about some of the ways I have been paying off my student loan debt and I hope that some of them are beneficial to you too!
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My Goal and How I Plan to Tackle My Student Loan Debt
Okay, I have decided I want to pay of $38,350 in student loan debt. When I finally pay off the loans, I will be able to choose where I want the extra money to go instead – such as retirement planning or saving for my daughter’s education. For now, though, I have decided that I will make all of my monthly minimum payments and then allocate the additional money to the debt.
Let’s take a look at how I plan to actually make this happen.
Step 1: Work Odd Jobs
One of the ways that I have been paying off my student loan debt is by working odd jobs. The job I have now is decent, but given that I am a single father, I still operate on a pretty tight budget. Because of this, I knew that I had to take on some additional odd jobs to make the money I need to be successful in repayment.
When I talk about odd jobs to do, there are many that you can partake in. I have explored:
- Home improvement jobs in the neighborhood
- Freelance writing
- Starting websites to sell products on
- Sell extra items in my home/items I pick up
Since I am good at writing, I use my skills to help me earn the money I need. I signed up for work through different third-party sites and work for clients who need content created. Once I complete the work, they pay me, and I pay down my student loan debt. I like this because I am able to work when I want and I am able to make as much or as little as I want.
Step 2: Better Budgeting
The next step I plan to take is to budget better, especially if more income is coming in. As mentioned above, I live close to paycheck to paycheck, so I know how to budget. While I am used to budgeting with what I have, I need to take some time to think about what I do not have.
Related Post: 5 Steps to Start a Budget
I have had to adjust some of the expenses I pay out each month too. For example, I cut back on the amount that I pay for cable and Internet by eliminating some of the services I do not need. This also helped me increase the amount of money that I am able to put towards my student loan debt.
Related Post: 14 Ways to Save up to $33,000 this Year
Final Thoughts on Student Loan Debt
While it may seem difficult to do, it is possible to pay off all my student loan debt and I plan to take a stab at it. One thing I know for sure is that I do NOT want to be stuck in a student loan debt rut forever and since developing a plan to eliminate it, I have felt so much more confident that I will achieve my goal.
David Chen started MillennialPersonaFinance.com after he began working off his student loan debt. He used it to chronicle his student debt and single parenting story, and he also wanted to use it to offer his own advice that was picked up along the way.
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