Studies estimate that more than 44 million Americans are struggling to pay off student loan debt. If you are one of those people, consider using your credit union in New Bedford to help you get out from under this debt. Recently published statistics from the Federal Reserve reveal that current outstanding student loan debt has surpassed the 1.5 trillion dollar mark. While you are likely only responsible for a small fraction of that price tag, credit union loans, and other strategies can be employed to help you dig out from underneath that debt.
Step One: Find Out How Much You Owe
Many people have no idea just how much debt they owe for student loans and other education-related costs. What are the monthly payments and, if you keep paying it off under the current plan, how long will it take you to complete your agreement? Are you current with your payments? Are there late fees for outstanding payments or other costs associated with falling behind? Contact someone to get all of the facts, so you know where you stand.
Step Two: Research Credit Union Loans
Similar to getting a credit union home loan, getting new credit union loans to pay off your student loans can provide you with an opportunity in New Bedford for credit savings. Interest rates for loans at your credit union in New Bedford are often much lower than rates offered at traditional banking institutions. If you can lock in a lower interest rate for your student loans, you can save a lot of money over time. However, it is important to note that student loan plans are often drastically different than private loan options through any other institution. Figure out the pros and cons of each option to see what suits you best.
Step Three: Make Bigger Payments
Whenever you can afford to do so, make a more significant payment. If your monthly payment is five hundred dollars and change, see if you can pay five hundred and fifty instead. While doubling an amount is a sure way to get things paid down faster, every single dollar that you pay toward a credit union home loan, auto loan or other credit union loans will mean that you are paying less interest.
Step Four: Make a Bonus Payment
When you get your tax refund each year, consider making an extra payment. While paying more each month can really help, one additional payment each year can really make a huge impact as well. So even if you can’t afford to do more than the monthly minimum, having a goal of making a bonus payment can really pay off and help you get rid of that student loan faster.
Step Five: Find Ways to Cut Costs
Find new ways to reduce your monthly bills so you can afford to pay more into your student loans. Instead of pricey five-dollar coffees each day on the way to work, consider investing in an at-home coffee maker and a cool travel cup and learn how to make your favorite specialty coffee yourself. Five dollars a day each day translates to twenty-five dollars a week and over a hundred dollars a month. Once you take out the cost for your new instant coffee maker and supplies, you can take that savings and put it toward your student or credit union loans.
Step Six: Extra Hours or Weekend Jobs
Search for new ways to make money. Volunteer for overtime shifts or consider taking on a temporary weekend job. Take all that extra money and use it to pay down your debt. Paying off a credit union home loan can result in New Bedford credit savings for interest reduction due to early pay-off. Just be careful not to over-do it and work so hard that you get sick and miss work at your regular day job.
Step Seven: Don’t Be Late
One of the most crucial things to remember about any type of credit union loans is never to be late. Late fees and added interest rates can add up a lot quicker than you might think. Visit your local credit union in New Bedford for information on all types of loans, including personal loans, auto loans, and a credit union home loan. Take advantage of all opportunities for New Bedford credit savings so you can be debt-free or at least out from under your student loans in no time!
Visit St Anne Credit Union in New Bedford
Since 1911, we have proudly served our members in the Plymouth and Bristol counties located in Southeastern Massachusetts. We offer a wide range of opportunities for checking, savings, loans, and much more at our credit union in New Bedford. Give us a call at 508-993-0011 or stop by our location on Union Street to speak with a representative in person about any of the products or programs that we offer to our members.