Are you looking for ways to pay your student loan quickly?
Do you want to overcome high interest rates and the burden while repaying your loans?
If yes, we’re there to help you!
Student loans are important for any young and aspiring student to get the best education possible with low interest and kick-start their careers.
But when it comes to repayment, things get complex, and many students fall into the trap of higher interest rates and loan burden in their day-to-day lives.
But you don’t need to worry.
While repaying student loans can be a hectic task for many young people, we have filtered some of the best tips and tactics for you to repay your cash loan in Singapore.
So without further ado, let’s get started.
1. Pay a little more at every installment
One of the effective ways to pay your student loan faster in Singapore or anywhere globally is to pay more at every installment. It might sound easier than said, but you don’t need to pay a hefty amount every single time.
You can try to pay SGD 20 – SGD 30 or even more with every minimum installment you are paying at your bank. Whatever suits your lifestyle and budget, try to exceed the minimum amount.
Any amount paid higher than the minimum amount will help you repay your student faster and ease your debt load.
You need to ensure with your bank to apply all these extra payments to the principal loan amount.
Once you start paying extra, slowly and gradually increase the amount, and you’ll be able to finish off your debt way sooner than the promised duration.
You can use the latest technology like a student loan calculator to estimate the increase in loan installments.
2. Stay away from certain repayment plans
Don’t try to be allured into certain repayment programs offered by the government. You should only opt to use such programs if you struggle to pay the bank’s minimum installment.
If you are looking to repay the education loan faster, you need to stay away from these programs because they are designed to lower the monthly payments and increase the loan term.
It will increase the loan duration and result in you ending up paying a higher interest rate.
You don’t want that, right?
3. Take maximum advantage of your job
Another effective way to repay your student loan faster is by taking a day job that offers student loan forgiveness. You have to give your working service in return and meet certain criteria to avail of the forgiveness program.
Jobs like a public servant, volunteer organization workers, nurses, and other jobs may offer you student forgiveness programs.
Many employers also offer assistance to the students, so look out for such benefits that can assist in repaying your loan fast.
4. Refinancing your student loans can also work
If you have a relatively higher interest rate, then refinancing your loan can be one of the popular ways to fulfill your loan.
The process is to take a new loan from a private lender which offers a lower interest rate and pay the bank loan in one shot.
Then you can repay your new loan with lower interest rates easily.
1. Make tax deductions and credits work in your favor
You can use school-related tax reduction to lower the principal interest rate so that you don’t end up paying a hefty interest rate amount.
Once you start your earnings graduating from your university, you can avail these offers, save taxes, and make the most of tax reductions.
2. Enroll in autopay
Another effective way to lower the interest rate and repay your loan faster is to choose the auto-pay options where the bank offers a specific discount on the interest rate.
No doubt, the offer will be a small one, but it can save a lot of money over the long run of your entire loan span.
3. Start a side hustle
You can repay your student loan fast once you have additional money flow in your bank account. And the best way is to start a side hustle to generate additional income.
Once you generate more cash flow, you’ll decrease the burden on your primary income and make things comfortable with your loan repayment.
Learn new skills, invest in yourself, and create on 2-3 money streams so that you don’t need to worry about your loan repayment
4. Cut from your budget
Another simple yet a bit difficult thing you can do is minimize your monthly expenses. You’ll be able to save more and have the power to repay your student loan fast if you spend less on your expenses.
Cover all your necessities and put a break on your luxury purchases to save extra for your loan payment.
Don’t drain your entire monthly income into buying unnecessary things and fall into trouble with your loan repayment.
5. Channel your additional revenue towards repayment
Whenever you get extra money or rewards, try to channel those towards repaying your loan.
- If you get a tax return, use it to pay your student loan
- If you get a monthly incentive or job reward, deposit it in your bank
- If your grandma gives a birthday cheque, go directly to your bank
Try to channel this additional flow of money to be free from all the hiccups.
6. Make bi-monthly payments
We kept the smartest method for the last. You can use the technique of bi-monthly payments to repay your loan quickly.
Cut the one payment rule and split your payments to twice per month. It will help add extra payments to your loans, and you’ll quickly repay your educational loan.
Reduce The Loan Burden Smartly
Follow these simple tips and tricks and see the magic you’ll have throughout your loan payment.
Don’t try to follow all; select a few according to your lifestyle and budget, and then be consistent following these highly useful tips and thank us later.
Loan repayment can sound like a mountain to climb, but it’s not that difficult if managed effectively.
Make the most of your student life!