Student loans can be a true hassle – especially when you are young, freshly out of college and potentially underemployed (or completely unemployed, for that matter). And although paying off or refinancing your student loan may seem like a far-fetched dream, the truth is that many people in the same situation are thinking of doing it sooner, rather than later.
Why? What are some of the best reasons to pay off your student loan fast? Read on and find out more.
It’s Money Saving at Its Finest
Regardless of how large or small your student loan may be, paying it off early will save you a lot of money in the long run. Just think of it: if you still have 10 years to pay on your student loan and you manage to pay it off in 3 years, you will have saved 7 years’ worth of interest rate. Now, that’s quite a lot of money no matter how you look at it.
…And You Can Actually Buy Something With the Saved Money
If the thought of simply saving money doesn’t motivate you, take it this way: by paying your student loan off in a shorter time span (and saving the interest money), you can actually buy yourself something you want. Maybe a new ultra-efficient laptop? Or a car? Or maybe you could take that trip to Europe before you even turn 30? Set your goal and keep it in mind each time you get de-motivated.
It’s Not Impossible
Yes, that’s a good reason as it is. It is not even by far impossible to pay off your student loan before its “expiration date”. Even adding a couple hundreds of dollars to your monthly payment can go a very long way. And no, saving $200 every month is not even by far not doable. Turning off the TV and the tap water, not buying everything you see on discount and cooking at home instead of eating out can all be great means to save the money you need to add to your extra-payments.
It Will Take a Burden Off Your Chest
It really will. Knowing that you are thousands of dollars less indebted can make your sleep tighter and more relaxing. What’s more, knowing that you have gotten rid of your student loan debt before you turn 30 and before you engage in larger loans can also give you a lot of peace of mind. Your 20s may be a time of hard-work, but pulling the weight now will make it much easier a few years from now.
It’s a Test of Maturity
Like it or not, you are out of college and a newcomer to this whole “adulthood thing”. You’ve got a lot to learn, a lot of mistakes to make and a lot of dreams to achieve. Setting the clear goal of paying off the student loan debt in “X” years will be a huge maturity test for you – and it can teach you a lot about being a full-time adult.