10 Strategies to Pay Off Student Loan Fast After Renewal Ends – GOBankingRates | Vette Leader

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Rumors of another extension of the student loan deferral are circulating, but are becoming increasingly unlikely. As it stands, all borrowers should prepare to begin paying off federal student loans in September 2022, as outlined by the US government.

How to pay off student loans quickly

The following 10 tips can help people pay off student loans faster:

Try these tips:

  1. Cut off unnecessary subscriptions
  2. Use coupon codes and store apps
  3. Create shopping lists
  4. Use budgeting apps
  5. Limit the extra costs
  6. Avoid food waste
  7. Choose cheaper entertainment options
  8. Withdraw and transfer credit card balances
  9. Buy Private Label
  10. refinance

1. Cut off unnecessary subscriptions

Did you know that the average millennial subscribes to 17 media and entertainment subscriptions? In addition to streaming services, this can also be a gym membership, a newsletter or a completely forgotten Patreon subscription. Nearly 42% said they were unaware they were paying for subscription services they no longer use.

Of course, there are generally at least one or two subscriptions that can be slashed to save more money each month or year. Check automatic payments from banking apps or search your email inbox for the words “subscription renewal” to target any potential subscriptions that might be worth canceling.

If a subscription is deemed essential for work purposes or similar, consider switching to an annual plan instead of monthly payments to save money on the cost of the subscription.

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  • Potential for rapid cost reduction

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  • Some subscriptions can be essential for work

2. Use coupon codes and store apps

Coupon code apps and grocery store apps can be great ways to save on fixed expenses each month. Nor does it mean sacrificing quality. Fetch Rewards is an example of a rebate app that works with thousands of popular grocery, home, and health and beauty brands.

Similarly, retailers like Target have apps that notify users when there are relevant discounts or sale windows so customers are getting more bang for their buck. Just be careful not to overspend or make compulsive purchases when using these apps.

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  • Savings on groceries and household items

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  • Users may end up buying unnecessary items

3. Make shopping lists

As handy as grocery store app discounters are, shoppers often tend to buy more than they should. By taking the time to make a list of exactly what you need before heading to the store, you can save time browsing and only spend money on the essentials. This results in long-term cost savings that can be used toward student loan repayments.

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4. Use budgeting apps

Another way to pay off student loan debt quickly is by using the best budgeting apps. The benefit of apps like PocketGuard is the ability to put entire financial lives together in one place to track all incoming and outgoing payments. They’ll help you manage your loan repayments in a manageable way while learning better money habits. The only downside is the subscription prices on some versions, so always opt for the free service.

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  • Great financial tools to manage inflows and outflows

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  • Additional services beyond the basic plan are usually chargeable

5. Limit the additional costs

Utilities are one of the sectors where costs are rising rapidly due to inflation — and they’re a silent killer. By staying conscious of water usage, remembering to unplug appliances that aren’t in use, and simply adjusting the thermostats, you can save hundreds of dollars each year. Although prices are largely out of the consumer’s control, switching providers can also be a good way to achieve price advantages.

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  • Rising supply prices are uncontrollable

6. Avoid food waste

Preparing meals ahead of time and freezing leftovers can be a great way to get the most out of your grocery expenses. Although it can be difficult to get used to at first, it’s a useful habit to start saving more each month to use on student loans.

advantages

  • Environmentally friendly
  • savings measures

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  • Forming the habit can be difficult

7. Opt for cheaper entertainment options

Maintaining a good social life is important, but it shouldn’t break the bank. You can offer alternatives to physically attending movies and sporting events by hosting events yourself at home or organizing meet-ups at a friend’s house. Giving preference to dining out over dining out can also be another option.

If you have hobbies like walking and running, you can explore new areas for free. YouTube can also be a great free alternative for learning and entertainment opportunities.

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  • There are plenty of inexpensive alternatives

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  • Limits social experiences

8. Withdraw and transfer credit card balances

Credit cards are part of everyday life for many consumers. But it’s important to avoid sky-high APRs — the average currently stands at 17.3%. Withdraw balances as soon as possible to avoid additional charges and look for credit card promotions that offer 0% APR for introductory periods. Doing this gives you all the benefits but adds more money that you can use to pay off loans.

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  • Minimizes interest to be paid

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  • Requires research to find best deals

9. Buy private label

Private label is generally cheaper as companies complete all packaging in-house, avoiding the need for advertising. While private label doesn’t always meet the same standard, in many cases there are cheaper generic options.

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  • Quality can be hit or miss

10. Refinancing

Homeowners can choose to refinance their mortgages to get better overall interest rates that result in cost savings. With interest rates rising, now might be a good time to secure a better interest rate with lower monthly repayments while it’s available.

If you have separate personal student loans, you should also refinance those to get lower interest rates. Certain companies like SoFi specialize in this area.

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  • Prices can change in both directions

Final recording

Is it wise to pay off student loans as soon as possible? Absolutely. Once the strain of student loans is lifted, consumers will open the doors to far more freedom without having to worry about lingering debt. Hopefully, the tips above should help you reach your goal faster.

Our in-house research team and on-site financial experts work together to create content that is accurate, impartial and timely. We verify every single statistic, quote, and fact against trusted primary sources to ensure the information we provide is accurate. Learn more about GOBankingRates’ processes and standards in our editorial policy.

About the author

David is a qualified financial advisor in the Republic of Ireland. He has a bachelor’s degree in business and entrepreneurship and over five years of investment experience.

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