This Rule Will Change How You Deal With Student Loans
Dealing with student loans can be overwhelming. However, one tactic that can make your life a whole lot easier is knowing your numbers.
Let's say you wanted to drive from Atlanta to St. Louis, a city that you've never visited. Would you hop into your car, start driving, and hope that you get to your destination with no form of guidance? I doubt it. Instead of guessing, you would use GPS to help you find your way because it will save you time, (gas) money, and some frustrations.
The same logic applies to your student loan debt pay-down plan. Your numbers help you create the roadmap that leads you to your destination of being debt-free. Unfortunately, when it comes to student loans, many either pay only the minimum monthly payment or defer and avoid the loans until they can't any longer. Both methods are a recipe for disaster because either option will likely cost you money at the end of the day and certainly add financial stress to your life.
When you know your numbers, things start to shift. You are put in the power position and can choose the best move from several options. You begin to understand where you are going and can more easily adjust when roadblocks come up.
We get it. Understanding student loan options is like learning a new language. Also, the math is pretty intimidating. However, the best thing that you can do is to use the power of understanding your numbers to your advantage. To do so, there are two key things you need.
Your Student Loan Information
Your balances, interest rates, and minimum payments
Your income, expenses, savings balance, and surplus (if applicable)
Once you have gathered this information, then go ahead and plug them into a student loan calculator. Many free options are available to help you on the internet, including these three calculators.