Student loan debt can seem like a life-sentence. Burdened with bills as you try to start your career — like a monster that grows larger the longer they go unpaid.
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The Sooner, The Better
Singh emphasizes a fundamental yet frequently overlooked truth about student loan repayment: the interest you pay each month isn’t fixed — banks prioritize their profits first. He encourages individuals to heed the principle: “Make you richer, not your bank.” This implies starting to pay off your loans as early as possible to curtail accumulating interest.
The concept is rooted in the lenders’ amortization schedule that initially applies most payments to interest, and later, more towards the principal. By amplifying your early payments, you effectively reduce the principal and consequently, the overall interest paid.
Making headway with accelerated repayments demands additional funds. How, then, can you secure extra money for your student loan balance? Singh’s answer is straightforward: generate more income. This could involve getting a part-time job, doing freelance work, or even establishing a side hustle.
The digital era offers various online platforms where you can sell products, offer services, or capitalize on a skill. Every extra dollar you earn can be channeled towards your debt, speeding up the path towards a debt-free existence.
Earning More to Pay More
One of Singh’s core beliefs is encapsulated in the idea of “earning more to pay more”. While many financial tips emphasize cost-cutting and frugal living, Singh underscores the crucial role of expanding your income to fast-track loan repayment.
Utilizing your skills, investing in self-improvement, and exploring entrepreneurial opportunities, you can significantly increase your earnings.
This supplementary income can be allocated towards making larger and more frequent payments on your student loans, helping you swiftly break away from the constraints of debt.
Jaspreet Singh’s approach to swiftly eliminating student loan debt involves a mix of early and larger repayments, income growth, and channeling additional income towards reducing debt.
Adopting these strategies, students and recent graduates can regain control of their financial futures, liberating themselves from debt, and stepping into a life of financial independence.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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