Feb 15, 2024 2:18:38 PM

How to Pay Off Student Loan Debt Fast

Paying Off Student Loan Debt Fast

Are you drowning in student loan debt and desperately looking for a way to break free? If so, you're not alone. With the average college graduate burdened by thousands of dollars in loans, it's no wonder that many individuals are seeking strategies to pay off their debts as quickly as possible. In this blog post, we will explore 4 concrete steps that can help you alleviate the weight of your student loans faster than you ever thought possible. From budgeting to side hustles, we've got you covered on your journey towards financial freedom.

How to Pay Off Student Loan Debt Fast

1. Create a monthly zero-based budget.

Knowing your numbers is an indispensable part of paying off any debt. Knowing your exact income and your budgeted expenses shows you how much margin you have in your monthly budget. In other words, how much money you can use to eliminate your student loan debt.

A budget ensures your money is pointed toward a goal such as saving, investing, or paying down debt. When you have assigned a job to every dollar of income, you have forced yourself to put those dollars where you have pre-determined they should go.
A budget places boundaries on your spending so that you can measure the margin you would like to use toward your goal is there when you need it.

A monthly zero-based budget is a game plan for your money and the only first step to beginning your student loan debt payoff journey. Make your budget now.

Learn how to build your zero-based budget here. Download your free zero-based budget pdf here.

Winning with money is 80% behavior and 20% math.

2. Adjust your expenses to gain margin.

Now that you have created your zero-based budget for the month how much margin do you have to direct toward your student loan debt? Is it enough? You may find that you need more money to be able to pay off your student loan debt fast. The first, and easiest place to start is by cutting expenses. Here are some practical ways to cut expenses and gain more margin.

Cut back on unnecessary expenses such as eating out, shopping, and entertainment. Hint: Your food budget is the quickest and fastest way to save money quickly. This is true of nearly everyone. Stay out of restaurants. Brown bag your lunch!
Look for ways to save money on your monthly bills such as negotiating with service providers or switching to cheaper options.
Meal prep at home instead of dining out or ordering takeout
Use coupons and discounts when making purchases online or in-store
Cancel subscriptions that are using up cash you could be directed toward debt. Is HBO that necessary?
Switch to a cheaper phone plan
Avoid impulse buying by having a no-spend month.
Start saving loose change in a jar each day
Opt for free activities instead of paid ones when planning outings with friends and family.
Use public transportation instead of driving a car wherever possible
Don't rent too much apartment! Your housing costs should always be less than 25% of your take-home pay. The lower the better when you are trying to pay off student loan debt.
Better yet, find a roommate to share housing costs
Drive the least expensive car you can find

3. Adjust your income to gain margin.

Sometimes, even after culling all the fat out of your expenses, you still need more margin. Let's look at some ways to make more income with a side hustle.

Become a Lyft or Uber Driver. Drive for Lyft or Uber. You can take advantage of flexible scheduling and extra pay during peak hours.
Meal Delivery. Grubhub, DoorDash or Uber Eats offer great opportunities to earn extra cash on a part-time basis. Like driving for Lyft or Uber you can take advantage of flexible scheduling.
Grocery Delivery. Check out Instacart or Shipt. You can make extra money and help others at the same time. Not everyone who orders grocery delivery is just "too busy" Many older shut-ins truly need someone to bring them food because they no longer have the mobility to do it themselves. You can earn a few extra dollars and help vulnerable populations at the same time.
Be a Survey Taker. Share your opinion. You can join a focus group (try Focus Group) or look into survey sites like MyPoints.com or Survey Junkie.
Rent your home or spare room on Airbnb. Consider renting extra space on Airbnb.
You would be surprised at how much money you can make on eBay. People will buy almost anything on eBay. Take an hour and go thru your garage and closets and you will find a lot of items you no longer use and can make several hundred dollars or more in just 7 days which is the typical length of an eBay auction. Sites like Facebook Marketplace, eBay, Poshmark, Thredup and GameStop are all great outlets for a quick sale of unused items in your home.
Use Your Creative Ability. If you have creative skills, people need you. Sites like Fiverr, Upwork or 99designs connect freelancers specializing in writing, editing, graphic design, and voice-over work for clients who need those creative minds. All you have to do to get started is create a profile (kind of like an online resumé) so potential employers can check out your experience, rates and specialties.
Babysit. The Old, but Effective, Standby Maybe you did some babysitting when you were younger. But you can still snag some of that babysitting cash as an adult. Parents need sitters all the time for date nights or busy days. Just get the word out and tell people you know that you’re up for watching their kids (for pay, of course).
Dog Walk/ Pet Sit. You can advertise your own pet-sitting business on social media, put up signs in your neighborhood, post at work, or use a website like Rover or Wag. They let you set your schedule and adjust your fees—but they do take a cut of your pay. If that seems like too much, try drumming up your own business with friends and family, and ask them to help you get the word out!
Cleaning. Cleaning houses is hard work, but if you don’t mind getting your hands dirty, this could be the perfect fit for you. We all need our houses cleaned, and lots of people would rather pay someone else to do it. Jump on this opportunity!
Sell products on Etsy. Are you crafty? Then maybe you should sell your crafty products on Etsy. Jewelry, scarves, paintings, hand-lettered inspirational prints, and more—Etsy’s a great place to sell anything you’re good at making.
Do tasks for people. Are you a handyman or just the person who gets things done? Take advantage of that talent and put yourself up for rent. Anything is better than debt folks so put up some signs, post on social media, spend $18 on some business cards, and start making extra money doing odd jobs for people. You can haul their junk to the dump, paint a fence or wash windows. I know a guy in our community that makes a very handsome living washing windows and cleaning gutters, by himself. He hustles, does a great job at fair rates, and has a great reputation. You can do it part-time.
Wash and detail cars. Like home cleaning, you’ll need to invest in some products (car wax, a shop vacuum, a leather cleaner, etc.). But they’ll go a long way, so you’re mostly investing time and energy, which are two of your best personal resources.
Mow lawns or do yard work. Many people will gladly pay you to do yard work for them—like mowing, raking, hedge-trimming, and leaf-blowing (rich people are afraid of leaves). I have a brother-in-law who is begging someone to mow his lawn and can't find anyone to do the job. You can grab seasonal hours with a local landscaping company, check out TaskEasy, or work on your own.

4. Execute your budget and pay off your loans fast.

Using a monthly budget helps you see where your money is going and where it is coming from...in exact amounts. But a budget is useless if you don't follow it. A budget is a game plan for your money and failing to execute your budget is nothing more than a plan to fail.

Review your budget weekly during the month and look for additional savings opportunities to make sure you are on track and not overspending.
Remind yourself daily why you want to pay off your student loan debt fast. Use it as motivation.
Tell your friends and family that you are on a mission to eliminate your student loan debt and ask them to help you be accountable.
Use the debt snowball method when paying off your student loans to gain momentum and stay motivated. Learn more about the debt snowball in this article about the value of being debt free.

Conclusion: Paying of Student Loan Debt Fast

In conclusion, paying off student loan debt fast requires a combination of budgeting, discipline, and focus. By implementing the strategies discussed in this article, such as intentional budgeting, reducing expenses, enlisting the support of family and friends and increasing income through side hustles, individuals can accelerate their journey toward becoming free of student loan debt. It is crucial to prioritize debt repayment and make sacrifices to gain the margin you can apply towards paying off student loans. Ultimately, by staying committed and focused on their goals, individuals can overcome the burden of student loan debt faster than they ever imagined possible.

7 Steps to Financial Wellness

Save a starter emergency fund of $1,000 as fast as you can.
Pay off your debt. Start by listing all of your debts except for your mortgage. Put them in order by balance from smallest to largest—regardless of interest rate. Pay minimum payments on everything but the little one. Focus on that one until it is gone. Then take that payment and put it toward the second-smallest debt, making minimum payments on the rest. That's what's called the debt snowball method, and you’ll use it to knock out your debts one by one until you are debt-free except for the house.
Save a full emergency fund of 3 to 6 months of household expenses
INVEST 15% of your gross income toward retirement.
CONTRIBUTE to children’s college education fund.
PAY off the house early.
Build wealth and be generous.