There are a lot of people who have student loan balances hanging over their heads. Are you one of these people? Here are some ways to quickly pay off your student loans if you are a homeowner in Connecticut.
Stick to the Plan
If you can afford the original repayment plan, do it! Most student loan repayment periods are 10 years. If you try to lower your payment or refinance, this could add another 20-25 years of repayment! 10 years doesn’t sound very quick in general, but it is way faster than 30 years! You may also want to consider making biweekly payments. You will end up paying an extra month every year which will shave off extra interest and time of repayment.
Take on a Second Job
Another way to quickly pay off your student loans is to take on a second job. Since your current job can cover all of the necessities now, your second job income can go straight to your student loan balance. You may lose some of your spare time, but just think of your financial freedom! Apply at least half or ideally all of that money to your student loan balance to speed up repayment. Make sure you communicate with your lender that you want the money applied to the principal so they don’t apply it to the next payment instead. This will also lower the overall interest paid of your loan since you are taking big chunks out of the balance. If you do not want to commit to a second job with a schedule, you could pick up side gigs. There are online bulletin boards where people can post random odd jobs they need help with and you can put that extra cash straight towards your balance. Side jobs like this can still provide you with the extra cash but without the weekly commitment to a work schedule. You can still keep a lot of your spare time and make some money here and there too! Every little bit helps! This will be a lot of work, but the benefits would be nice.
Sell Your Extra Stuff
Take advantage of online yard sale type apps and list your extra stuff for sale. Go through your closets and get rid of unneeded clothing or collectible items that may be worth some extra money. Maybe consider selling your car to get a more affordable one with better gas mileage or refinancing your current auto loan to have a lower payment each month. You could also hold garage sales as often as your community allows and ask friends and family for their unwanted belongings to add to your sale. This is far easier in todays world with Ebay and FB marketplace and other forms of social media. You don’t have to dedicate an entire day hosting a garage sale, hoping that the right people will show up to purchase your more expensive items. Instead, as you come across items hiding in your attic, basement, garage, and closets that you forgot you had and don’t need, you can list them for sale online where thousands of people can view them. Why have these items collecting dust in your house when you could sell them and use the money to get ahead!
Sell Your House
If you are a homeowner in Connecticut, the easiest and quickest way to pay off your student loans with a big chunk of money is to sell your house! You may even be able to negotiate the buyer paying a majority of the fees to have more money to put towards your balance. Take into consideration downsizing now to pay off those student loans and have more money for the future. You can also take advantage of the low-interest rates when you are looking for a loan for your new home. You can put thousands of dollars towards your student loans, or hopefully, pay off the balance in full, and find a different house to live in and save extra money with the lower interest rates on mortgages. You will also save in some unexpected places, like the electric and water bill and the actual time it takes to clean your house. You might be able to find a smaller, more energy-efficient home closer to your work and save you time and gas money every day! And keep in mind this isnt a forever plan. You can live more modestly with less utiliy and upkeep expenses for a few years and then once your loans are paid off, you can find another house or living situation that more closely meets your needs and wants.