While excited students across South Africa are in the process of enrolling for college, repaying student loan debt, on the other hand, plague many graduates. Although student debt unlocks opportunities for many, if not managed well from the start it can set you on a negative financial path.
By making your student loan debt a priority from the get-go you will be able to pay it off quicker and make the most of your financial future.
Manage your student loan by:
One thing students are very resourceful at is living cheaply. Try and extend this for as long as possible. With a mountain of student debt to repay, now is not the time to live lavishly. Instead, try and ride the wave of freebies for as long as possible. Live with your parents if you can, drive a cheap car and keep your expenses at a bare minimum.
The best thing you can do for your financial future is to learn how to create and stick to a budget early on in life. The best way to manage your student loan effectively is by having a strict budget. This way you will be able to you live within your means and make the most of every cent you earn.
3.Paying more than you should
Fresh out of college, most graduates don’t necessarily have a home and car loan or a spouse and children to care for. So, if you can, try and pay more than the monthly instalment. This will help you pay off your loan quicker or at least take the pressure off you later in life when you do have other expenses to consider.
4.Generating extra income
No matter what age you are, generating extra income is always a good idea. Maybe you could run a little side business or take on a part-time job like working at a restaurant after hours for example.
Working two jobs, however, isn’t necessarily something you’ll be able to hold up for long. So whatever you do, don’t get use to having that extra income as part of your monthly budget. Instead use it to pay off your student loan.
5.Delaying new debt
It is only natural to want to climb the steps in life. However, if your budget doesn’t allow it, delay taking on new debt to fund a wardrobe, a car, home, marriage or whatever your heart yearns for. Instead, save towards these goals from your very first pay cheque. A healthy budget needs to make room for saving – even if it is a small amount at first.
Has your student loan debt from years back set you on an adverse course of consumer debt? Do you find yourself unable to budget or afford your monthly expenses due to debt instalments absorbing most of your salary? At Debt Rescue we help over-indebted South Africans with debt counselling that can help them take back control of their finances. Give us a call today!