Pay Off Student Loans Faster

Written by Mark Sanfilippo
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Nobody likes to have a ton of debt hovering over their financial life. Most of us would rather not have a car payment, a mortgage payment, and a student loan payment. This isn't even getting into credit card debt. More than anything, most people would love to be able to pay off their student loans at a faster rate.

If you haven't purchased a home or an automobile yet, then getting rid of your student debt is crucial. The loans that you have to apply for in order to purchase a home or a car will generally all require a credit check. Part of a credit check involves determining your debt to income ratio. The general rule is you shouldn't have more than 20 percent of your monthly income going to loan repayment.

Even with a good paying job it can still be difficult to pay off a significant amount of your student debt and lower your debt to income ratio. These are generally huge loans and the interest rates aren't always that friendly. One excellent way to help yourself pay off your student loans faster is to consolidate your various loans into one lower interest lump sum loan.

Consolidation Saves Time and Money

By consolidating your loans, you can lock in an interest rate that is likely to be lower than the various loans you already have. It may look worse on paper to have one enormous loan, but with a lower interest rate on that one lump sum, you'll be saving a significant amount of money in the long run. Additionally, with consolidation you can save yourself time by only having to pay one student loan bill each month instead of potentially several.

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