How I’m Paying Off Six Figures Of Student Debt | The Financial Diet

Paying off student loans is something tons of people struggle with — here’s a personal story about tackling over 6 figures in debt. Want more info on student loans? Check out this video:

Hey guys it’s lauren here from the financial diet and today i’m going to be talking about student loan debt specifically tips and tricks for paying off a lot of student debt like six figures of student debt and before i walk you through those best practices i’m going to talk a little bit about my experience with student debt so news flash joe my husband and i have

A lot of student debt like about a hundred and fifty thousand dollars worth of debt for a lot of people the idea of having six figures of student debt would be a death sentence and that’s exactly what joe and i had when we got married back in march it required us to be hyper vigilant about saving spending and budgeting our money the way that we’re handling our

Student loan debt at the moment is pretty simple i’m responsible for making payments on my student loan debt and joe is responsible for making payments on his when i’m done paying off my loans which is about $18,000 then i’ll throw any extra money towards his loan so we can knock those out as you’ve guessed joe has more student loans than i do and he currently pays

About $1,400 a month on those loans yes that’s kind of like a mortgage payment but he opted into a super aggressive payback plan however what did help us enormous lee is that joe refinanced his loan from about a 7% interest rate over the course of 15 years down to a five point eight interest rate over the course of ten years so over the course of the loan that’ll

Save us about thirty thousand dollars however that did make his monthly loan payments go up about a hundred dollars per month now joe and i are pretty fortunate because we can make our loan payments pretty easily every month he has a good paying job and i’m a really diligent saver but there have been sacrifices that we’ve needed to make for example we haven’t been

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Able to buy a house as quickly as we wanted to and we live in a pretty small apartment like less than 300 feet big but overall we’re very diligent and careful with our money which makes paying back six figures of student debt manageable now i’m going to jump into some popular and effective strategies for paying off a heavy load of debt which is bound to make any

Situation a little bit easier number one is to make a solid plan and strategy the most important thing you can do is draw up a concrete plan of action for how you’re going to handle your debt it’ll make it a lot less scary and a lot more manageable first things first do the math to figure out when your payoff period will be the payoff period being the data you’re

Completely done paying off your loans now figure out how much money you have to pay each month to get there there are tools and calculators online which will help you figure this out and i’ll link out to them in the description below it’s essential to have a plan to visualize your repayment strategy for example do you want an income based repayment plan do you want

To simultaneously save for a house while you pay down your debt these are things that you need to figure out for yourself and get down on paper the more you know the less painful this process will be for example did you know that you get a student loan interest deduction when you file your taxes now you do number two is to consolidate your debt and refinance now

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This is a very popular and effective strategy for handling student debt and a lot of personal finance bloggers will mention it there’s a fantastic article on student loan hero which talks about this process saying when you are financed your student loans you’ll get one consolidated loan with one monthly payment you’ll likely just want to include loans or you can

Actually decrease your interest rate some of the benefits of consolidating your loans is getting perhaps a lower interest rate or fixed interest rate or perhaps even lower monthly payments however consolidating your loans and we’re financing is not a one-size-fits-all solution and you really have to do your due diligence to make sure it’s the right option for you

We’ll link out to further reading on this in the description below number three is to increase your income you know just snap your fingers and have more money i’m just kidding it’s not that easy increasing your income is a great way to pay loans back because you’ll have extra cash on hand each month to throw at the principal of your loan obviously making more money

As easier said than done but luckily for you tfd has a bunch of videos on our channel that talk about side hustles and ways to make extra cash on the side harnessing the skills you may already have is a great way to make extra money and to make paying off six figures of debt a little bit easier number four is to trim your budget and to put that extra money to good

Use needless to say when you have six figures of debt it’s essential to go through your budget with a fine-tooth comb to see where overspending and where you can save money then you can follow that extra money to make more than the minimum payment on your student loan every month in addition to saving up for things like your emergency fund experts also recommend

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That you make extra payments on the loans with the highest interest rates first to knock those out of the way when trimming your budget make sure you’re paying extra attention to the small ways that you can keep more money in your pocket for example did you know that if you sign up for auto debit some lenders will actually shave a little bit of money off your

Interest payments each month every little bit helps number five last but not least is to look for loan forgiveness programs some jobs offer student loan forgiveness programs if you meet certain requirements for example there are some volunteer programs that in exchange for work they’ll forgive some of your student loan debt you can also look for full-time public

Service jobs in either the federal or the local government sector and also at nonprofit organizations that are deemed tax-exempt by the irs obviously there are pros and cons for these and they’re not available to everyone so do your research this goes to show you that you might have more options than you thought you did and it’s worth looking into to figure out

What’s available to you now the information in this video is not exhaustive and everyone’s road to paying back their student loans is going to look a little bit different it’s always important to seek out the advice of professionals and experts to find which path is the best one for you so as always thank you for watching and don’t forget to hit the subscribe button

And go to the financial.com for more bye

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How I'm Paying Off Six Figures Of Student Debt | The Financial Diet By The Financial Diet

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