The Best Student Debt Repayment Methods You Need to Know NowJun 01, 2018
The last months of a post-secondary program can be a whirlwind of excitement and anticipation. Most students can’t wait to finish up and move on to the next phase of their professional and personal lives. But with student debt lurking, that anticipation can be mixed with a dose of fear and anxiety, too. If you’re looking at the end of your program and wondering how to accomplish your next set of goals while managing your debt, here are some methods that might work for you:
The long-form plan
One of the best ways to feel more in control of your debt–and your anxieties about it–is to thoroughly review your debt situation. The Financial Consumer Agency of Canada lays out a long-form plan to help you tally your debt load, list what you owe and when to pay them, and determine how to manage debt repayment with your other goals and financial obligations.
The Latte factor
Christine Drummond of The Wallet Diet tells readers about her student debt repayment strategy, where she was able to save money by reducing or eliminating spending on small, everyday purchases, like saving over a $1,000 a year by simply cutting on her daily lattes. Sometimes, it’s about figuring out the things you can and can’t live without, and building a lifestyle from there to make paying back debt a natural part of your life.
The roommate factor
Here’s the facts: student debt is a major burden on many grads, and a big contributor to the national debt load. Financial expert Rubina Ahmed-Haq takes a look at some of the more practical consequences and strategies for dealing with such high debt in this article, A Financial Expert Explains Why Millennials Are Leaving Home Later Than Their Parents. Living at home can reduce a significant amount of financial stress from your situation, saving you hundreds or thousands a month that you can put towards student debt.
There are plenty of blogs and tips out there to help you dig your way out of student debt. For example, this blog looks at debt relief options such as student loan forgiveness, or debt consolidation, and budgeting advice, to the gig economy.
If you’re repaying student debt to the Ontario government, look at the OSAP online debt calculator to learn about your payments, and the online debt calculator for Canada Student Loans for federal loans.
Bridget Casey and her crew from Money After Graduation explain How To Use The Debt Snowflake Method to repay your student debt. The snowflakes are the little “windfalls” in your financial life– money in couch cushions, birthday cash, tax refunds, and so on. Keeping those small findings, or extra cash and putting them towards a debt can quickly add up and help you reduce debt faster.
Jessica Moorhouse from Mo’ Money talks to a friend from college about how he paid back $35,000 in student debt in about a year and a half, in simply making more than the minimum payments towards his debt to save on interest, and ultimately eliminate debt sooner.
Make the biggest impact now
Here are some methods for paying down your debt efficiently from The Good Men project. 6 Strategies Young Professionals Can Use to Pay Off Their Debt gives a variety of ways to fit debt repayment into your life now, so you can reap the benefits of a debt free life later.
For many grads, Student Debt Regrets are real, and paying any amount of debt back can be overwhelming. But finding a method of two that works for your life style can mean you get out of debt sooner than you expected.