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That debt totals to trillions of dollars $1.727 trillion, to be exact, per theEducation Data Initiative.
Right now, the average undergraduate is borrowing $32,637 to get a bachelors degree at a public university.
Getting saddled with thousands of dollars in student loan debt is stressful.
But financial experts assure borrowers that there are ways to overcome that debt.
Thats called the debt avalanche method, said Steven Kibbel, CFP, a financial advisor atProp Firm App.
You make the minimum payment on all your other loans.
But for the one with the highest rate, you pay as much extra as possible until its gone.
Then you move to the loan with the next highest rate, and so on.
Doing this saves you a bunch of money in interest costs.
Refinancing can potentially save you a lot on interest.
When you first got the loans, you probably didnt havemuch income or credityet.
Refinancing can cut years off your payments, Kibbel said.
OHare cautioned that with this method, the payment may double.
This can be good news, as it can speed up your debt payoff.
Ask Your Employer for Help
Some employers offer an education benefit.
OHare said its worth asking whether this benefit can be used to pay off student debt.
Seek assistance from an employer to shifttraditional education benefitsfrom obtaining a degree or credentials to supporting loan repayment needs.
OHare also recommended asking for a raise or a bonus based on the quality of your work.
Heres a simple trick: Make half of your monthly paymentevery two weeksinstead.
So if your payment is $200 per month, pay $100 every two weeks.
This equals one extra payment per year without any extra money out of your pocket!
That extra payment adds up over time, he said.
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Takeaway
Finding and working with a financial advisor is a great idea.
A financial advisor will help keep track of your finances and assist you in attaining your financial goals.
Get to know your Financial Advisor options today for Free!
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