Student Debt Liberation: Strategies To Eliminate Your Loans

Taking out a student loan to complete your studies is one of those types of debt that is hard to avoid. Unless you have wealthy parents or are able to get a full scholarship, the unfortunate truth is that you cannot get a tertiary education without incurring some student debt. 

However, it is absolutely crucial that you repay and clear that debt as soon as possible to ensure a good credit rating and secure your financial freedom. With that in mind, here are some strategies for how to eliminate your student debt loans as soon as possible.

Make a Budget You Can Stick To

The first step towards overcoming your financial woes is to create a clear and accurate budget that will help you understand how much you’re spending and how much you’re earning. Doing so will help you identify any areas where you can cut back or save. 

By reducing unnecessary expenses, you can free up money to put towards your student loans, thus paying them off faster. The key to having a budget is to be disciplined, otherwise, it won’t work.

Funnel Extra Funds Towards The Loan When Possible

The best way to get rid of debt quickly is to pay it off as fast as possible. Make larger payments whenever you can, such as using extra money from bonuses, commissions, tax refunds, or unexpected windfalls. Instead of spending that money on frivolous items like clothes or a new Playstation, invest it in your student loan to expedite repayment.

Consider Refinancing or Consolidating Your Loan

Refinancing your student loan or consolidating multiple loans can potentially lower your interest rate. If you have a good credit rating, more of your payments will go towards the principal rather than the interest. Ultimately, this can save you money over the life of the loan and help you pay off your debt faster. 

Before taking this step, however, consult with a professional financial advisor to ensure you’re getting the best deal possible.

Live Frugally and Boost Your Income Where You Can

While it’s not easy, living frugally means cutting back on unnecessary expenses such as fast food, outings, and other extravagant purchases. It means opting for the cheaper option on the shelf rather than your favourite brand. 

Additionally, consider taking on side jobs to increase your income, then use the extra money to pay off your debt quicker. Every extra rand earned can contribute to faster debt repayment.

If you’re struggling with student loans and looking for ways to eliminate your debt quickly, the strategies in this article can help set you on the path to financial freedom. From creating a disciplined budget to living frugally and making extra payments whenever possible, there are multiple approaches you can take to get rid of your debt faster. Consider refinancing or consolidating your loans to lower interest rates, and boost your income where you can. At Zero Debt, we’re here to guide you every step of the way. Whether you need personalised advice or professional assistance, our team of debt counselling experts is ready to help you make the best decisions for your financial future. Take the first step towards becoming debt-free by setting up a counselling session today. Contact Zero Debt to get the advice and support you need!

FAQs and Answers

1. What is student debt, and why is it important to repay it quickly?
   Student debt is a loan taken to fund tertiary education. Repaying it quickly is crucial to maintain a good credit rating, avoid high interest costs, and achieve financial freedom.
2. How can I create a budget to help pay off student loans faster?
   Start by tracking your income and expenses. Identify areas to cut back, such as unnecessary spending on outings or fast food, and funnel the extra funds towards your loan repayments.
3. What are the benefits of consolidating or refinancing student loans?
   Consolidating or refinancing can combine multiple loans into one payment and lower your interest rate. This ensures that more of your repayments go towards the principal, saving you money over time.
4. Can living frugally help me repay student loans faster?
   Yes, living frugally means reducing unnecessary expenses like entertainment or premium brands. Savings from frugal living can be redirected towards loan repayments to accelerate debt clearance.
5. What are the advantages of paying extra towards student loans?
   Paying extra, such as bonuses or tax refunds, reduces the loan principal faster. This shortens the repayment period and lowers the total interest paid on the loan.
6. Can side jobs help with student loan repayment?
   Yes, taking on a side job or freelance work can increase your income. Using this additional income to pay off your loans can significantly reduce your debt repayment period.
7. How do I know if debt consolidation or refinancing is right for me?
   Consult a professional financial advisor to determine if consolidating or refinancing will save you money. It depends on your current loan terms, interest rates, and credit rating.
8. Where can I get professional help for managing my student debt?
   At Zero Debt, our team of debt counselling experts provides personalised advice and professional assistance to help you manage and eliminate your student debt effectively.