Common Mistakes to Avoid When Paying Off Your Student Loans

Common Mistakes to Avoid When Paying Off Your Student Loans

After graduation, paying off student loans can be a hard journey to keep on track. As long as you avoid making the common mistakes below, you will set yourself up for success to pay off your loans in the quickest and most efficient way.

Not Budgeting Before Graduation – Creating a financial plan before graduation gives you a realistic map on finances after turning that tassel. Avoid unnecessary purchases and consider having a roommate to be able to pay your monthly student loan payment and still have money left over for your savings.

Delaying Employment – Use your degree you spent 4+ years obtaining and find a job to kick start your career. Finding a job will allow you to start making payments on your student loans and give you stability after graduation.

Late Payments – All it takes is one late payment and your credit score is damaged. One way to ensure your monthly payments get paid is using an auto draft. An auto draft will automatically transfer the payment from your bank account to the lender.

Using Credit Cards to Pay Off Debt – Do not use a credit card to help pay off your student loans. Credit cards make it so easy to spend outside your means, stick to debit cards when it comes to monthly bills and monthly spending.

Not Making Extra Payments – Making extra payments each year or every other year is a faster and more efficient way to pay off student debts. You can make payments on your student loans at any time!

Not Living – Don’t let your student loan hinder your lifestyle. Having loans only means you have to live within your means. Continue to have fun, socialize and focus on your career development and experiences that will make you a more valuable person, employer and partner in life.  

Although Points West Community Bank does not make student loans, we can help you avoid common mistakes when paying them off. Get in touch with your local banker to find out more!

 

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