3 Tips for Paying off Student Loan Debt FAST | Thank You TFMJ Fans! | Dollar Dude

All right, time to check on the old YouTube
channel. Hmm, that’s interesting. My subscriber count is going up and I’m getting a lot more comments. I wonder where they all came from? Oh no. OH NOOOOOOOOOOOOOOO What is up, my fellow Money Minions! My name is Troy, also known as – the Dollar
Dude, and..hi? Hey, hi…all the new people…I don’t – I don’t…I don’t..I…I… what? So in case you hadn’t heard, my friend Kristy, also known as The Former Mrs Jones, had a giveaway on her channel recently. And as part of the giveaway, she gave a shout
out to two other YouTube channels. One of them was Free to Frugal, a channel
by Kim, who is great, she’s got a lot of videos on minimalism and saving money,
I’ll leave a link down to her channel in the description in case you
haven’t checked her out yet. But the other channel she shouted out…was…this guy! The other channel I want you to check out
is “Dollar Dude”, which is Troy – Like…boom. And then the notifications started. My phone was going blip blip blip literally
all day. Blip blip…blip blip blip… – and I just really loved his story – blbbblblblblbllblb Tons of new subscribers, tons of new comments,
my subscriber count literally quadrupled in 48 hours. Literally. Such power is too much for one person to have. So I really want you guys to show him a lot
of love – Oh, you did. Joking aside guys, you all are unbelievably
awesome and I am beyond honored that The legendary Former Mrs Jones decided to give me a shout
out. I’ll leave a link down to The Former Mrs.
Jones channel in the description for what, like the 4 people who aren’t already subscribed to her? So thank you so much Kristy and welcome to all
the new Money Minions! Anyway, I promised student loans and student loans is what you guys shall get! Congratulations! You’ve graduated college, you’ve made
it through the trials, You’re finally
out into the real world making real money and what?…oh… You had to pay those back? You’re kidding. You’re not kidding? Wow. That’s right, folks. Statistics for student loan debt are kind of…wow. 44.2 million Americans have student loan debt totaling $1.44 trillion dollars. Insane. Are you one of those 44.2 million? If you are, you probably want to get out from
under that. Fast. Like now, right? So let’s walk through 3 tips for paying
off your student loan as fast as possible. Number 1) Make sure you’re paying down the
principal and not just deferring interest. Student loan servicers are pretty sneaky,
guys. It is completely up to them how they divvy
up your loan payments. So if you send in an extra free grand this
month expecting the principal balance to go down, you might be in for a shock when you
call them up. “We’ve applied your extra payment to the
accruing interest of your loan. So your next payment isn’t due until August
of 2021, isn’t that great?” Oh hell no. You think they don’t realize exactly what
they are doing? Look, you gotta break it down for them and
tell them exactly how you want extra payments applied. Call them up or send them a letter and say
– I want my extra payments applied to the principal only. You might have to say it a couple times because
sometimes it’s hard for them to understand that you’re not a moron and can actually
do math. Principal only. Make sense? Number 2) Sign up for automatic payments. Most loan services make you a deal where if
you automate your minimum payment every month, they’ll give you a slight reduction in your
interest rate. Now if you’re doing the debt snowball, you
may say – why should I care about the interest rate? You probably noticed this but student loans
tend to be big. In fact they’re probably the largest debt
you have not including a mortgage. So if you’re doing the debt snowball, aka
baby step 2 on the Dave Ramsey plan, you’re likely going to get to that last in the list. All that time while you’re paying the minimums
while focusing on other debt, that interest is going to be accruing at that rate, so every
little bit of a reduction in the interest rate is going to help. More importantly by automating your finances
you take your forgetful brain out of the equation. Number 3) Make payments bi-weekly. That’s right. It’s better to split up your payment. If your monthly payment is $400 a month, then
it’s better to pay $200 bi-weekly. If you line this up with you paycheck, say,
you get paid every two weeks, It’s like you’re making one extra payment a year because
you get 26 paychecks a year. That’s like 13 full payments a year instead
of 12, and that one extra monthly payment can save you a lot. You’re also reducing the amount of interest
that is accruing between payments because interest accrues daily and is applied daily
on most loans. This particular rule can apply to any interest
based debt you might have, not just student loans. Of course this rule only applies when the
student loan is not the only debt you have left. If it is, you should be throwing dump trucks
worth of money at it wherever and whenever you can, who cares if its bi-weekly or not? More like bi-daily, cause we’re getting
out of debt, money minions represent, what up? And this one is done guys, hit the like button,
or if you’re not yet a Minion, subscribe to the channel if you feel so inclined, we’d
love to have you. Also, if you’ve got a question, finance
or otherwise, let’s talk about it. So until next time, my fellow Money Minions,
my name is Troy and I will see you guys ….next Dollar!

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