Make it Automatic
One of the best ways to be dedicated to setting money aside is to set up automatic payments. By making it automatic, you won’t even have to think about the payments since the money will be going straight towards your student debt. Along with that, these payments become a habit and force you to make smart financial decisions.
Increase Your Income
It might seem obvious – if you want to make payments but can’t afford much to begin with, now’s a great time to pick up a side gig. The college life is busy as is, but there are ways to make time for some extra income. There are side gigs that can be flexible to your schedule like; Uber, Lyft, Postmates, GubHub, DoorDash or even the Gig app. Check these out to see if they are available in your area. You can find remote work to do on your own time, get a weekend-only job or even get a paid internship. A paid internship would benefit your education, your resume and your finances all at once!
Try a Budgeting App
There are countless money management apps out there that make budgeting a breeze. Starting November 9th, AbbyBank will have a Personal Financial Management (PFM) Budgeting tool. Check it out on our website www.abbybank.com/personal/personal-financial-management-tool. Visually seeing what you spend your money on puts your spending habits into perspective, allowing you to cut some unnecessary expenses and put that money towards your student debt.
It’s common to want to borrow more than we need, but try to stick to a plan that will allow you to afford the payments. Only borrowing what you need will save you money down the road, which you can use towards more student loan payments.
Tackle the High Interest Rate First
Focus on the loan with the highest interest rate first, paying that one down to avoid more and more accruing interest. This is called the “debt avalanche method” and it’s great for paying off debt as quick as possible.
By starting your student loan payments as early as possible, you can save a substantial amount over time. Interest racks up, time flies by and before you know it, you’re graduating and making monthly payments. Relieve yourself of future stress by getting a head start! Contact AbbyBank to open a savings account and learn more about the services we offer.