How To Pay Student Loans Fast

How To Pay Student Loans Fast


how’s it going everyone 💁‍♂️ my name is Steven and welcome back to another episode of The Finance Gamer where we show you how to be smarter with your finances crush your debt faster 💪 and set you on the path to building your wealth 💰💰 if you wanna start now begin by subscribing and hitting that bell 🔔 down below so you don’t miss out on anything so today we’re going to be talking about student loans which I think we can all agree that they suck 😡 and that they’re a burden to so many of us not only that but there’s no way you can get out of paying them not even if you file for bankruptcy 😫 so if you’re actually trying to figure out what you can do to pay off your student loans faster I’m actually gonna share with you 7 steps that I took personally to pay off my student loans in 39 months and how you can do the same thing so let’s not waste any more time guys and let’s get started! [theme music]🎵 the first step that I took to pay off my student loans was actually track[ing] every individual loan that I had and if you log into your account you’ll probably see that you’ll have 8-10 different student loans and different interest rates attached so now that you have that information, your second step that you wanna do is you’ll wanna figure out how you wanna tackle these loans so what I mean by that is do you wanna start paying the ones with the smallest amount or do you wanna tackle the ones with the highest monthly interest 📈 so if you go with the first approach this is more if you’re a person that wants to make progress right away or you’re looking for like a small win 🙌 if you’re actually looking on the other side though, that you wanna save more money in the long run you might just wanna start looking at the ones with the biggest interest rates and paying them off [first] if you qualify you can actually
consolidate all your loans into one big boy right here and by doing this you can actually
lower your interest rates 📉 you see here that it’s 4.5% [as] opposed to 5.9% and you’re actually paying less in interest compared to paying individual loans if you actually wanna see if you qualify for consolidating your loans I’m actually gonna include a link down in
the description box below 👇 where you can actually put all your information in and see if that’s an opportunity you can take so now that you know how you’re going to tackle your loans the next step you gotta take, step number three is start playing with the numbers if you wanna start seeing how paying your student loan quicker is going to affect your monthly payments you actually wanna start doing this step so I’m actually gonna take you to another tab that I have here so you’ll see that here I’ll have two examples one, if you decide to pay the loan in 10 years, and another one if you wanna pay it in 3 years so here I’m taking the national averages again $34,000 at 5.9% and paying them off in 10 years, 120 months so my monthly payment comes out to
be $375 so if in the long run we run the numbers by the time you’re done paying off your loan you’re going to be paying $4500 which $1100 of that is interest alone but if you actually look here if you actually decide to pay it off in 3 years using the same interest rate and principal amount your payment actually goes up by $650 but look what happens in the long term you actually pay less in interest so if you compare these two interest rates against one another in the long run you’d be saving $8,000 😲 that’s why it’s very important that
you start playing with these numbers so you can actually start seeing what is doable for you so if this payment is too high we can actually change this let’s change this to 5 years, so that’s 60 months so see right here, you’d have to make $300 of additional payment okay so you’ve run the numbers and you’ve gotten to a number where you’re kind of comfortable at you’re saying eh that’s doable 🤗 so that is step number four: actually start making payments towards the principal and this is gonna be important
because every time you make a principal payment that’s going to make your interest go down significantly by the time we get to the 44th payment in our 5 year example we’d only be paying $52 of interest but in the 10 years we’d be paying $118 of interest alone that’s DOUBLE this amount 😱 so now we know how much extra we need to be paying every month so now the next step which everyone’s going to love step five is you need to learn how to budget 🤔 I know that everyone hates the “b” word and when everyone says “budget” people think that oh I’m not gonna be happy, I’m gonna have to sacrifice so much 😰 but the thing budgeting does is that it actually helps you plan everything out all this that we’re doing it helps you find out everything that’s coming in and everything that’s going out, when it comes to expenses this way once you know how much money you have to put aside for savings and necessities then you’ll know how much is leftover to put towards these student loans and I mean you can always save a little bit for yourself towards the end [of the month] to buy the stuff that you want budgeting doesn’t mean you have to sacrifice EVERYTHING in your life and if you haven’t seen it already I actually made a video of the top three apps that I recommend where you can track all your financial accounts on your phone and on your computer so I’ll actually also put that in the link description down below so you can check it out 👇 and that should actually help you out a lot when it comes to your budget alright guys so we know all this information we know how much you wanna start paying extra every month but after doing your budget you see that you still don’t have enough to meet that monthly payment so that’s where step number six comes [in] and that’s finding other forms of income so you need to figure out what skills you have that you can sell and there’s websites on the internet like Fiverr where you can actually sell your services to other people you can even see if you have a spare bedroom in your house and put that on Airbnb also come tax time instead of using that big fat refund check and spending it on all those fancy things plan towards putting it towards this monthly payment so you can start making that savings alright guys now we have the last step, step number seven and that is try not to enroll in auto-pay or any other repayment plans the reason I say that is that I want to keep you involved with all these steps that we went through because it gets you interacting more with your finances and just seeing how payments go down and how you’re spending less in interest gets you more motivated in continuing to do this stuff that’s why I’m also against repayment plans like forbearance, income-based repayments cuz all this does is extend the term of your debts so instead of paying it for 10, you’re going to be paying for 15, 20 years and if you do that, you’re going to be paying DOUBLE the amount of interest imagine paying double this amount $22,000 in interest 💸💸 okay guys so this is pretty much the seven steps that you can start taking to start paying off your student loans fast and as you can see instead of me just blabbing on and telling you “do this, do that” 🙄 showing you visually what you can do just by using two spreadsheets is just so beneficial and if you’re committed to it and actually seeing how much you save in the long term this money can be yours so that pretty much does it for me guys please let me know if you have any questions on anything we went over I’m more than happy to comment on any of this stuff let me know on social media, on Facebook and Instagram where you can contact me, DM me thanks again guys for watching this video if you enjoyed it please drop a like 👍 down below 👇 subscribe if you haven’t already thanks again guys and keep crushing it in your financial game I’ll see ya’ll next time peace ✌

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