Students often ask, “How can I pay my loan as quickly as possible?”
Well, there are many practical tips that help you pay off your debt faster. Let’s take a look at them:
1. Save Fives
Every time you find a $5 bill, put it into a jar. Encourage your family members to do the same. At the end of each month, use the saved money to make an extra payment on your student loan.
Saving every single $5 bill you find can help you reduce your repayment term by as much as 4 years. It also means saving thousands of dollars in interest.
2. Pay more
You make one full payment every month. That comes to 12 full payments. Why don’t you try squeezing two half payments every two weeks, instead?
This way you will make 13 full payments (There are 52 weeks a year, meaning 26 half payments, meaning 13 full payments.). In other words, this way, you will be able to make one extra full payment on your loan. You can save more on interest and pay your loan faster if you round up each payment to the next $100 or $10.
3. Pay while studying
You can reduce the owed amount by making payments while you’re still in school. This will help you reduce not only the principal amount but also the interest amount that accrues on the loan.
How does the bank applies the payments you make while you’re in school depends on several factors. Usually, your payments will be first used to pay off any fees and accrued interest. Once these two are out of the way, payments will be applied to the principal amount.
4. Volunteer
There are many online platforms that reward students who offer their skilled time to nonprofit projects with student loan repayment. Different platforms have different working models, but the basic concept is the same. Search online and find a platform that is most suitable for you and has a presence in your city.
Volunteer work is a great way to spend some free time and build your social capital. The help you receive with your student loan repayment, which can be substantial as some projects give you $20 an hour in loan repayment, is an added bonus.
5. Live and work outside of Singapore
You may receive the exemption from paying taxes, which can run up to tens of thousands of dollars if you live and work abroad. You can use this money to pay off your student loan quickly.
Get a loan from the best moneylender in Singapore today. Our interest rates are low, if you find another money lender with lower interest rates than us, let us know. We are sure we will be able to match it.
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