How to Pay Off $115k in Student Loan Debt and Still Save Money to Invest
Student loan debt can be a huge burden, especially when you’re just starting out in your career. With $115k in student loan debt and a new job paying $85k, it can be difficult to figure out how to pay off the debt while still saving money to invest. Fortunately, there are a few strategies you can use to make sure you’re able to pay off your debt and still save money for the future.
Create a budget
Prioritize your debt
Make payments on time
Set aside money for the future
The first step is to create a budget. Take a look at your income and expenses and figure out how much you can realistically afford to put towards your student loan debt each month. Make sure to factor in any other debts you may have, such as credit card debt or car loans. Once you have a budget in place, you can start to make a plan for how to pay off your student loan debt.
The next step is to prioritize your debt. If you have multiple loans, it’s important to figure out which ones should be paid off first. Generally, it’s best to focus on the loans with the highest interest rates first, as these will cost you the most in the long run. Once you’ve identified the loans you want to focus on, you can start to make a plan for how to pay them off.
Once you’ve created a budget and identified which loans to focus on, it’s time to start making payments. Make sure to make your payments on time each month, as late payments can result in late fees and higher interest rates. If you’re able to, you may also want to consider making extra payments on your loans. This can help you pay off your debt faster and save you money in the long run.
Finally, it’s important to make sure you’re still saving money for the future. Even if you’re focused on paying off your student loan debt, it’s important to make sure you’re still setting aside money for retirement and other long-term goals. Consider setting up an automatic transfer from your checking account to a savings account each month, so you can make sure you’re still saving money even when you’re focused on paying off your debt.
Good to know:
Student loan debt: Money borrowed to pay for college or university tuition and other related expenses.
Budget: A plan for how to manage your money.
Extra payments: Payments made in addition to the regular monthly payment.
Automatic transfer: A recurring transfer of money from one account to another.
Paying off student loan debt can be a daunting task, but with the right strategies in place, it’s possible to pay off your debt and still save money for the future. By creating a budget, prioritizing your debt, making payments on time, and setting aside money for the future, you can make sure you’re able to pay off your student loan debt and still save money for the future.
The information provided in this article is for informational purposes only and should not be construed as financial advice. Please consult a financial advisor for advice specific to your financial situation.
