Thinking about your student loan debt can be overwhelming, but know that you are not alone. Today, the total student loan debt in the U.S. is over $44 million. On average, those who graduated in 2017 owe $28,650. With so many people managing student loan debt, we want to provide some helpful tips on how best to erase it as soon as possible.
Create A Budget
The best place to start when managing your student debt is to create a budget. Many people attempt to budget in their minds, but don’t take the time to write everything down. Get out a notebook — or use U-fi’s budgeting worksheet.
By logging your expenses every month, you can see exactly where your money is going. You might even find that budgeting helps you find extra funds that you can save or use to pay off debt faster. For a step by step guide on budgeting or to learn more about setting financial goals, check out this blog.
Know Your Wants Versus Needs
Understanding the differences between wants and needs can be the key to successful budgeting. There are things like tuition, fees, housing, and food that you need to pay for. Going out to eat with friends is a want, even though you need to eat. Buying a new vehicle is a want, even though you may need reliable transportation. That doesn’t mean you have to give up on eating out or spending money on things you want — in fact, it’s often important to do so. But by determining which expenses are wants and which are needs, you’ll be able to spend your money responsibly without going overboard. Check out this blog to see how you can determine the differences between your expenses.
Create a Payment Schedule
If you aren’t using an automated payment system every month, creating a monthly schedule can help you organize when each payment needs to be made, and ensure that you never have to worry about the consequences of late payments. If you’re making this calendar online, be sure to set up alerts for when you need to make a payment and how much is owed.
Consider Refinancing Your Loans
Did you know that refinancing your student loans is another way to help manage your debt? When you refinance a loan, you can pay a lower rate to save more money over the life of the loan. Refinancing can also simplify your life by combining your student loans into one monthly payment. If your goal is to obtain a lower interest rate and ultimately lower the total repayment costs of your loans, then refinancing with U-fi Loans is worth exploring.
You went to college, studied for hours on end, and earned the degree you always wanted. You’ve made plenty of smart decisions in your life. If managing your student loan debt is next on your list, U-fi is here to help.