Americans owe $1.78 trillion in student loan debt. And on a per borrower basis, that amounts to an average of $37,338, which clearly isn't a small sum.
Not only can student debt be tricky to pay off, but it can also negatively impact your mental health. The mere fact of owing money can put a damper on your outlook and make you feel bad about your finances. So the sooner you're able to shed that debt, the better. Here are some things you can do to rid yourself of your student loan balance -- whether you owe $37,338 or a completely different sum.
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1. Budget carefully
Keeping up with student loan debt -- and getting ahead of it -- often boils down to managing your earnings and expenses wisely Following a budget isn't the most fun way to function, but when you're grappling with expensive student loan payments, it's certainly helpful.
Make a list of your expenses so you can see how your student loan payments fit in. And if you're looking to accelerate your loan payoff date, take the amount you're supposed to pay each month and boost it.
Of course, paying extra into your loans might mean having to cut back on things you love. However, once you'd done paying off your student debt, you can begin to spend more freely on things like travel and leisure. And in the near term, it may be worth it to allocate more money to those loans so you can rid yourself of them sooner.
2. Use the gig economy to your benefit
The more you earn, the more you might be able to pay into your student loans on a monthly basis. So if your salary will only take you so far, look at getting a side hustle. Many people go this route to meet financial goals, and paying off student debt is certainly a respectable one.
Keep in mind that the gig economy offers people in your shoes a world of flexibility. Don't want to commit to a preset schedule? You don't have to. Rather, you can find a gig you can do at your own pace, like driving for a ride-hailing service. And who knows? You may even decide to keep your side hustle once your student loan balance is whittled down to $0 so you simply have more financial leeway to do the things you enjoy.
3. Take advantage of windfalls
You may come into extra money at different points in your life. You might receive a modest inheritance from a family member. Or, you could have a year where the IRS sends you a giant refund check.
Putting your extra money into your student loans is a great way to make them go away sooner rather than later. And remember, the sooner you chip away at your principal balance, the less interest on that debt you're apt to accrue.
The idea of paying off a $37,338 student loan balance can be daunting. In fact, paying off any sort of student debt balance can be challenging, even if you owe a lot less than the average American. But if you follow these tips, you may find that you're able to unload your student debt at a much faster pace than expected.
