Want to avoid bankruptcy over your student debt? Then start coming up with a plan for paying it off sooner rather than later. Here are four additional tips for getting rid of your student debt quicker.
Eliminate Unnecessary Monthly Payments
Everyone has monthly payments for things that they don't use. For some, it's a gym subscription for a gym they never go to. For others, it's long-forgotten subscriptions for things they are not interested in anymore. Try to get rid of as many monthly subscriptions as possible. Just two $50/month subscriptions add up to $1,200 a year. Taking the bus instead of leasing a car, buying a treadmill for your home instead of going to the gym, using Netflix and cutting cable, and negotiating a lower deal for your internet are just some ideas.
Utilize Tax Deductions
Did you know that you can deduct up to $2,500 on your taxes for interest payments that you make on your student loans? If you are still in college, you can also get deductions for the money you are paying for your tuition.
Crowdfunding might seem like a desperate move, but if you truly are desperate, consider setting up a campaign on GoFundMe or another crowdfunding site. Get some family members and friends to get the first donations rolling, and you may just get some much needed help from good-hearted strangers.
The Debt Snowball Effect
A great strategy, if you have many loans, is to use the debt snowball effect, which means paying off the smallest loans first and get them out of the way before you tackle the bigger loans. Getting a few loans repaid will put you in the right mindset and encourage you to get all of your loans repaid.
While declaring bankruptcy should not be your first choice, it might still be an option. Contact us today for legal advice on your situation.