Many people have student loan balances hanging over their heads. If you are one of these people here are some ways to quickly pay off your student loans if you are a homeowner in Austin.
Stick to the Plan
If you can afford the original repayment plan, do it! Most student loan repayment periods are 10 years. Lowering your payment or refinancing, could add another 20-25 years of repayment! 10 years doesn’t sound very quick in general, but it is faster than 30 years! You may also want to consider making biweekly payments. You will end up paying an extra month every year which will shave off extra interest and reduce the time of repayment.
Take on a Second Job
You may want to consider taking on a second job to pay off your student loans faster. Since your current job can cover all of the necessities, your second job income can go straight to your student loan balance. You may lose some of your spare time, but just think of your financial freedom! Apply at least half or ideally all of that money from your second job to your student loan balance to speed up repayment. Make sure you communicate with your lender that you want the money applied to the principal so they don’t apply it to the next payment instead. This will help lower the overall interest paid on your loan since you are taking big chunks out of the balance by making principal only payments.
Sell Your Extra Stuff
Take advantage of online yard sale type apps and list your extra stuff for sale. Go through your closets and get rid of unneeded clothing or collectible items that may be worth some extra money. You could also hold garage sales as often as your community allows and ask friends and family for their unwanted belongings to add to your sale.
Sell Your House
If you are a homeowner in Austin, the easiest and quickest way to pay off your student loans with a big chunk of money is to sell your house. Take into consideration downsizing to pay off those student loans and have more money for the future. You can also take advantage of the low-interest rates when you are looking for a loan for your new home. You can put thousands of dollars towards your student loans, or hopefully, pay off the balance in full. If you downsize you may also save in some unexpected places, like the electric and water bill and the actual time it takes to clean your house. You might be able to find a smaller, more energy-efficient home closer to your work and save you time and gas money every day!