Student loans are large loans. You have a life to live and goals to achieve in the meantime. If you concentrate on paying them off immediately, you put off living because your focus is repayment. I would advise against that since it’ll take years to pay off an amount like that.
Definitely invest some money and make sure you pay yourself first by way of savings account each month. Pay the minimums on your student loan each month, but send an additional payment if you can afford to. The way America is designed, we have to have debt to establish credit, but it’s how well you manage that debt that makes or breaks you.
I am going through the same thing right now with 33K in debt. If you do this, you will be multitasking and not putting any area of your life off until later. You can have your career, pay your loan, save and grow your money (invest) all at the same time. Just continue to be responsible in your financial affairs.
Hi I tried to reply to your previous question but since it had gone to “voting” stage, I wasn’t able to comment.
This is basically in regards to your last question about trying to have a financial plan and trying to reduce your debt.
I’ve recently been reading this book called, “Debt free, Cashed up and laughing: The cheapskates way to living the good life” by Cath Armstrong & Lea-Anne Brighton.
I’ve found this book really helpful to reducing my own debts, and it enabled me to even get a saving plan on my small wage. It has some very good tips on how to save money, and how to work out your finances.
It also shows you how to make your own cleaning products eg. Washing Powder (easy and saves so much money), and other ways to manage your money, how to shop, everything.
I find it really good, and the tips are amazing.
Apparently this book has it’s own website too. (but I haven’t checked it out properly. You don’t have to join it…I reckon just get the book….but the website is called
if you want to have a look at it.
I would definitely recommend buying the book. I found the knowledge in it really helpful.
I found a review on the book on that site if your interested:
look on the cheapskates site and it tells you about it.
I also just read some tidbits in a magazine just then.
I’ll type out the whole section:
Use Everyday Savings:
Any extra money you pay off your home loan can add up to big savings on avoided interest. Make the effort to forego one bottle of wine or cafe lunch a week and put that money towards your mortgage instead. Just $ 100 extra a month could shave years and thousands of dollars off your mortgage in the long term. Discuss it wih your lender and be amazed.
Recommended Reading: Anyone wanting to pay their mortgage off faster should read the book, “Your mortgage and How to pay it off in five years, by Someone Who Did it in three, by Anita Bell. Anita and her husband paid out their mortgage when interest rates were at 17 per cent – so she knows what she’s talking about.
Compare interest rates
go to
a website providing a free list of current interest rates so you can compare different financial institutions. If your bank does not match up to the most competitive rates, ask them if they can lower their rate for you. If they want to keep your custom, they’ll agree.
Make extra Payments
Not only is this possible, it can save you a fortune. Simply make the same mortage payment every four weeks instead of every calendar month. There are 52 weeks in a year, which means there’s an average of 4.3 weeks in a month. If you divide 52 by four weeks (because you’re diving you payments by four weeks, not 4.3) you’ll get 13 months. Making extra payments this way equates to an extra month’s payment every year. Over a period of five years, you will have made an extra five months of payments, saving many thousands of dollars in interest and paying off your loan years sooner.
December 12th, 2009
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Student loans are large loans. You have a life to live and goals to achieve in the meantime. If you concentrate on paying them off immediately, you put off living because your focus is repayment. I would advise against that since it’ll take years to pay off an amount like that.
Definitely invest some money and make sure you pay yourself first by way of savings account each month. Pay the minimums on your student loan each month, but send an additional payment if you can afford to. The way America is designed, we have to have debt to establish credit, but it’s how well you manage that debt that makes or breaks you.
I am going through the same thing right now with 33K in debt. If you do this, you will be multitasking and not putting any area of your life off until later. You can have your career, pay your loan, save and grow your money (invest) all at the same time. Just continue to be responsible in your financial affairs.
Online Insurance
Hi I tried to reply to your previous question but since it had gone to “voting” stage, I wasn’t able to comment.
This is basically in regards to your last question about trying to have a financial plan and trying to reduce your debt.
I’ve recently been reading this book called, “Debt free, Cashed up and laughing: The cheapskates way to living the good life” by Cath Armstrong & Lea-Anne Brighton.
I’ve found this book really helpful to reducing my own debts, and it enabled me to even get a saving plan on my small wage. It has some very good tips on how to save money, and how to work out your finances.
It also shows you how to make your own cleaning products eg. Washing Powder (easy and saves so much money), and other ways to manage your money, how to shop, everything.
I find it really good, and the tips are amazing.
Apparently this book has it’s own website too. (but I haven’t checked it out properly. You don’t have to join it…I reckon just get the book….but the website is called
if you want to have a look at it.
I would definitely recommend buying the book. I found the knowledge in it really helpful.
I found a review on the book on that site if your interested:
look on the cheapskates site and it tells you about it.
I also just read some tidbits in a magazine just then.
I’ll type out the whole section:
Use Everyday Savings:
Any extra money you pay off your home loan can add up to big savings on avoided interest. Make the effort to forego one bottle of wine or cafe lunch a week and put that money towards your mortgage instead. Just $ 100 extra a month could shave years and thousands of dollars off your mortgage in the long term. Discuss it wih your lender and be amazed.
Recommended Reading: Anyone wanting to pay their mortgage off faster should read the book, “Your mortgage and How to pay it off in five years, by Someone Who Did it in three, by Anita Bell. Anita and her husband paid out their mortgage when interest rates were at 17 per cent – so she knows what she’s talking about.
Compare interest rates
go to
a website providing a free list of current interest rates so you can compare different financial institutions. If your bank does not match up to the most competitive rates, ask them if they can lower their rate for you. If they want to keep your custom, they’ll agree.
Make extra Payments
Not only is this possible, it can save you a fortune. Simply make the same mortage payment every four weeks instead of every calendar month. There are 52 weeks in a year, which means there’s an average of 4.3 weeks in a month. If you divide 52 by four weeks (because you’re diving you payments by four weeks, not 4.3) you’ll get 13 months. Making extra payments this way equates to an extra month’s payment every year. Over a period of five years, you will have made an extra five months of payments, saving many thousands of dollars in interest and paying off your loan years sooner.
Current Interest Rates