Aug 1, 2024 Current Resources

How To Fit Student Loan Payments Back Into Your Budget

(TheDailyCurrents.com) – The time has come to start paying student loans again, and that means it’s time to start budgeting for another bill.

Luckily, with a little resourceful thinking and careful review of your finances, your student loan payments will be covered.

Make sure you have a solid budget in place and adopt some strategies that work best to fit student loan payments back into your life.

Spend Less

Anytime someone tries to adjust their budget, the first step is always to spend less.

This strategy is especially effective because not only are you holding on to more money, you’re also making changes that are the least likely to impact your financial situation long-term.

Print out your transactions and examine them closely. Are there subscriptions or services that you can live without?

Do you pay a monthly fee for unlimited car washes? What about streaming television services or monthly box subscriptions?

Consider shopping around for cheaper car insurance or cell phone plans, and pay attention to how often you’re eating out. In fact, did you know the average American spends around $2000 a year on coffee?

If necessary, you can also buy a car with lower payments or even move to a more affordable house or apartment so you can budget for your student loans.

Cutting back on spending can be temporary until you’re back on your feet or until you’ve found a spot in your budget for your student loans.

Get a Side Hustle

Aside from spending less, it’s also wise to think about how to earn more money so you’ve got more to work with.

Consider getting a part time job that’s fun and stress-free.

In fact, about half of American adults have a side hustle that generates extra income in addition to their full time job.

Grocery delivery services, Uber, and dog walking are all great side hustles that can earn you extra money on a schedule that you choose.

With your unique skillset, you may be able to find a side gig that’s lucrative and fun.

Whether you freelance sketches of pets, create charcuterie boards for parties, or pick up extra holiday shifts at your favorite retail shop, you’ll be able to earn extra income that you can put toward your student loans each month.

Shift Debt Payment and Saving Strategies

Have you been fortunate enough to put away money into savings each month?

If so, you may need to shift some of those funds so that they go toward your student loans instead.

Another way to reallocate funds is by looking at your debt payments.

Are you paying more than the minimum each month toward your car, credit card, or home?

Instead, it may be wise to pay the minimum toward each debt so that you’ve got enough money to pay for your student loans, as well.

Even if you’re only able to pay the minimum each month, you’ll slowly be chipping away at each debt, one month at a time.

Get On An Income-Based Repayment Plan

If you’ve tried everything and can’t seem to make the numbers work, you may want to consider an income-based repayment plan.

The new Saving on a Valuable Education (SAVE) plan is an income-driven repayment plan that lowers monthly payments so they’re affordable.

Although it will take longer to pay them off, at least you’ll be able to stay afloat.

These payment plans are based on your income level, and in many cases, your repayment can be reduced by half or more.

It may be time to start tackling our student loan payments, but it doesn’t have to be a stressful process.

By using a few strategies, you can easily manipulate your budget so your student loan payments fit perfectly, and with change to spare.