Are you one of those people who have a huge student loan balance? Are you also a house owner in Los Angeles? Keep on reading … we’ll give you some tips on how to pay off your student loans ASAP.
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Stick to the Plan
If you already have a repayment plan and if you can afford it, then, by all means, do it! But you have to be aware that most student repayment plans take up to 10 years. If you try to lower your refinance or payment then it could take 30 to 35 years! We understand. 10 years is really long time, but it is way better than 35 years! You may want to consider paying every other week. You’d end up paying 1 month extra for every year which will make repayment a little bit faster, the best part is it will also shave off extra interests.
Take on a Second Job
One other thing to pay off your student loan quickly is to take on a second job. Your salary money from your first job can cover all your necessities and this second job income can go straight into your student loans. Don’t think about all the spare time that you’re gonna lose. Instead, think about your financial freedom. To make the repayment faster, apply at least half of your second job payment. But it is going to be much better if you allocate all of it for the student loans.
Make it clear with your lender that you want all of your payment to be applied to the principal. They might think that it is for the next payment. Paying the principal will lower the overall interest paid off your loan. This is because you are paying a huge amount out of the balance.
However, if you really don’t want to take on a second job, you can also pick up a side gig. People post random odd jobs online and you can put the extra cash towards your student loan balance. This indeed is a lot of work but again think about your financial freedom.
Sell Your Extra Stuff
There are online yard sale apps that you can take advantage of. Make sure to list your extra stuff for sale. Tidy up your closet and get rid of unneeded collectibles like books, accessories, or clothing items that you think may be worth some extra cash. You could also organize a garage sale every month or as often as your community allows it. Ask your family and friends for any of their unwanted belongings to add to your sale.
If it’s not too much, you can also consider downgrading your car. Selling your car and buying a more affordable one with better gas mileage. You can also try refinancing your current auto loan to have a lower monthly payment.
Sell Your House
If you have a house in Los Angeles, you have to know that the EASIEST way to really pay off your student loan with a huge amount of cash is by selling your house. You can negotiate with the buyer and ask him/her to cover most of the fees so that you can get a higher profit and put it towards your student loan balance.
Consider downsizing now and pay off your student loan and have more money in the coming years. Take advantage of the low-interest rates when you are looking for a loan for a new home. You can put thousands of dollars towards your student loan that will probably pay it off in full and then you can find a different house to live in and you can save extra money with much lower interest rates on mortgages! You still may be able to find a smaller, energy-efficient home closer to your work that will also save you time and gas money every single day!