Important Tips on How to Repay Your Student Loan Quickly

1. Important Tips on How to Repay Your Student Loan Quickly

2. There are many benefits to taking out study loans; it allows you to concentrate on your future without having to worry about how to pay for your studies. And as intimidating as repaying a student loan may appear to be, there are many ways in which you can make this seemingly complicated task a little easier. All you really need is a plan and lots of determination. Paying off your loan can actually be done quicker than you think. Let's look at the importance and benefits of paying back your study loan in the shortest possible time.

3. The importance and benefits of paying off your student loan quickly • Of course, the main benefit is that you will save money and that it gives you freedom. For instance, you will be able to go into a career that you really love, even if it pays a bit less. It gives you the freedom to travel the world and it gives you the opportunity to take out a bond on your first home. Paying off your study loan quickly, and especially, regularly, is important for maintaining a positive credit score as well, as defaulting on a payment can have far-reaching consequences when it comes to applying for finance or credit in the future.

4. Start curbing your spending • In order to repay your Study Loans in the shortest possible time, you will need to look at what your highest monthly costs are. Accommodation, for instance, will top that list, for sure. Consider staying with your parents for as long as possible, or find student accommodation that you can share. This will decrease your costs significantly and free up money to repay your loan. You can also try to spend less money on entertainment. Instead of heading to the club every weekend, you can invite some friends over for a 'bring-and-share' night of drinks and DVDs. If you do want to go out every now and then, go early to avoid entrance fees.

5. Create an emergency fund • Of course, creating an emergency fund should be part of your budget, but the importance of this really needs to be stressed. Emergency budgets are vitally important for those unforeseen circumstances that we all come across at some point in our lives, such as a medical emergency or your car breaking down. Try building an 'emergency-kitty' of at least R10, 000 so that you don't need to get yourself further into debt in the event of an emergency.

6. Start your repayments while studying • Aim for paying off your student loan before graduating. Remember that the interest meter runs all the time. You can try to avoid interest capitalization and save money by paying off a little more than required every month.

7. Maintain a positive attitude and remember the goal • Achieving any goal is easier and more fun if you reward yourself as well. While the goal is to become debt-free, the rewards such as being able to travel or treat yourself to something you have not been able to afford can be just the motivation you need to stay focused and disciplined while repaying your loan. And of course, college graduates have better career opportunities and will earn better salaries, another excellent benefit to focus on.

8. In closing • As daunting as repaying a study loan may be, there are ways in which you can make this less complicated. Do your calculations, implement a budget and a repayment plan and, above all: be determined, stay positive and keep your eye on the prize.

9. Source: http://www.sooperarticles.com/finance-articles/important-tips-how-repay-your-student-loan-quickly-1367849.html https://www.facebook.com/AvanseEducationLoan https://www.linkedin.com/company/avanse-financial-services https://twitter.com/avanseeduloan https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug