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What is the best way to pay off student loans?

I have a lot of student loans and am trying to figure out how to best pay them off while not living paycheck-to-paycheck. #studentloans

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Sara’s Answer

Hi Larissa,


Not sure what your specific circumstances are so this might be very general.

Have you looked into refinancing? that would help so that you don't need to pay too much per month. Also it would be a good idea to start a separate bank account on the side for the sole purpose of saving so that you can pay back larger chunks when you can. Try to actively throw some money there every week, if possible direct part of your pay check to it automatically so that you 'forget' you have that money and that way you wont spend it.


Check out this article, I found it to have extremely useful resources [check the calculator at the bottom of the article to estimate your savings by refinancing]

https://www.thesimpledollar.com/steps-to-deal-with-massive-student-loan-debt/
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Clarissa’s Answer

I would say it’s a matter of separating your needs from your wants. Determine what you need to live on and if there is anywhere you could downsize temporarily. For example, can you live in a cheaper apartment, if you have a car loan you could sell it and buy an older one for much less, or if you find yourself eating out a lot find ways to make cheap meals at home or take a lunch from home with you to work. Then pick one loan to tackle and pay a little extra principle each month while making the minimum payments in the rest. Once you pay off that one move to the next loan.

You can check out the Dave Ramsey podcast too, he has some good strategies on tackling debt. I didn’t follow his plan super close but I found his strategies helpful.
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