Most people with student loans choose to keep their loans around for the tax break or because it has a low interest rate.
However, why would you want to do this when you could pay off your student loan early and free up hundreds of dollars a month to do with what you would like?
Just because most student loans have a low interest rate does not mean that it should hang around until the day you die. Instead, start working through these steps and get Sallie Mae off your back and out of your home.
Before you begin trying to pay off your student loan early, it is best to find out how much you own on it. Find your latest statement for your student loan and figure out how much you owe and what your interest rate is. You can use this information to find out how long it will take to pay off your student loans at the current rate and even how much you should pay extra on your loan to get it paid off in a certain amount of time. So make sure to get a hold of your statement to get this useful information.
In order to pay your student loan off early, you are likely going to need to bring some extra money. Getting a second job or doing different odd jobs is a great way to do this.
Decide how much extra you want to make and then find a way to bring in that money. You can donate plasma, deliver pizzas, tutor students or even write online in your spare time. Making extra money to put toward your debt does not have to be difficult or take up a lot of your time, so long as you are meeting your financial goal.
Try to remember how you lived back in college. Learn how to cook cheap meals, find free entertainment and maybe even get a roommate. Find ways to cut back on your expenses and apply the money you save toward your loan.
Remember, the financial sacrifices you make now will pay off in the long run. You have likely lived like this before, so it shouldn’t be that hard to do again. So start cutting those extra things that you really do not need.
Once you have extra money to pay off your student loan, be sure to apply that money toward the principal balance on your loan.
Whenever you make the payment, be sure to specify that the extra money you pay should go to paying off the principle and not toward next month’s payment. By paying down your principal balance you will be saving money on interest and getting that much closer to getting Sallie Mae off your back.
Though it may take time and hard work, paying off your student loan early can be a very rewarding experience.
Not only will you be freeing up hundreds of dollars a month, but you will have the satisfaction of knowing that you will not be paying for your college education for the rest of your life.
So make the sacrifices now so you can live the rest of your life without that student loan hanging around.
Our society has been spoon-fed the myth that the FICO score is king. We work, we pay bills on time, we are a slave to the almighty credit score.
Every time we turn around, someone wants to sell us credit or help us improve our scores. We are told from a very early age that we must establish credit by opening credit cards and using them repeatedly. We are led to believe that debt is a tool to help us build wealth.
But it is all a myth.
We don’t NEED credit scores.
In fact, by trying to obtain a good credit rating, we are setting ourselves up for failure, or at the very least, for a lifetime of debt.
College students are inundated with credit offers to “help” them get started in the “real world”. They are given limits that far exceed what they are even able to pay while going to school full time. Many of them do not even have jobs with which to earn the money to repay their creditors!
Short-term loans – another credit product used by millions. And you know what? You can get them without credit too! There are many companies, offering emergency loans for bad credit – click here to find out more.
Add to this student loans, and most young adults start off in the real world with a stack of bills that they struggle to pay with their entry-level jobs. In fact, a large number of people that file for bankruptcy each year are college students. But this fact doesn’t stop these credit mongers from chasing their prey or feeding lies to these impressionable young people.
Most people would agree that we don’t NEED credit cards. Sure, they are nice to have, but we could get by paying for the smaller things with cash.
But what about a car? Everyone needs credit to get a car loan, right? The fact is, we as Americans are obsessed with our cars. Where else in the world will you find a couple on the verge of financial ruin, struggling to pay their bills, with two new cars sitting in their driveway?
I say save up the cash! Buy a car outright-it will save you thousands in interest over the years and you will not be saddled with the monthly payments. There really are some nice, inexpensive used cars out there and if you have no other payments, it really won’t take that long to save up enough for a used car.
And here’s the good news: you aren’t married to your car! It is not a lifetime purchase! Most vehicles reach a certain point where their depreciation virtually stops or at least slows down to a snail’s pace. If you buy a cheap used car and continue to save money, chances are you can sell it six months to a year later and get about what you paid for it. Add that to your savings and get a nicer car without ever owing to the bank a dime!
On to the next myth, the biggest one of all: the home mortgage. We have been raised to believe that we will never be able to own a home without a good credit score. While the truth is, you can buy a home with no credit at all. Welcome to the world of manual underwriting. This is the way that our grandparents bought their homes, in a world before we went into debt to buy every little thing our hearts desire. There are still many banks and credit unions that do manual underwriting.
This is a little more work for the bank because it is much easier to just look at a score and say “yes” or “no”, but it still can be easily done. First, they will look at your employment history, to see how long you have been at your job. Two years or more is a big plus. Then they will check with your landlord to see if you have been paying rent on time, or even early.
They will also check with your utility companies to make sure your bills are current and are paid on time. The final things they will check are your bank account balance and history and how much of a downpayment you have. The larger the downpayment the better, because this means less risk for them to loan you the money, but it is also helpful to save nice sized savings account that you can fall back on if you are faced with a crisis. Once they determine these things you are on your way to owning a home!
It may take some will and determination to be different than the average Joe. But imagine the possibilities that would open up to you if you had no payments. Imagine what you could do with your income if you got to keep it. Don’t fall for the creditors’ myths. They are trying to take your money!
Most car loans use simple interest, a type of interest of which the interest charge is calculated only on the principal.
The car loan interest rate varies from one bank to the other and is influenced by your monthly income, profession, existing EMI, credit score, etc.
While applying for a new car loan, you will need to meet certain eligibility criteria and these requirements can differ from lender to lender. Car Loan Interest Rates are a factor of the loan amount, your occupation and the company you are working with.
Welcome to TT Capital & Loans, I am Andrew Warren. A real impact of your personal finances in a positive way.