A lot of people have student loan balances hanging over their heads. Are you one of them? Your student loan debt can make handling other payments — including your home mortgage — more challenging. Here are some ways to quickly pay off your student loans if you are a homeowner in Sacramento.
Stick to the Plan
If you can afford the original repayment plan, do it! Most student loan repayment periods are 10 years. If you try to lower your payment or refinance, this could add another 20-25 years of repayment! You may also want to consider making biweekly payments. You will end up paying an extra month every year, which shaves off extra interest and the total time of repayment.
Refinance Your Property
The solution to student loan repayment may be right under your feet — literally. If you have home equity, refinancing with a cash-out loan gives you a windfall to pay off your student loans. You may benefit from a better interest rate on the debt this way, and you have simplified your debt to a single payment. This option is best for homeowners with decent credit and at least 30% equity in their property, but if you qualify you’ll have a lot of lenders to choose from.
Sell Your Stuff
Take advantage of online yard sale type apps and list your extra stuff for sale. Go through your closets and get rid of unneeded clothing or collectible items that may be worth some extra money. Turn some of those things that don’t bring you joy into some cold hard cash to make extra loan payments! Downgrading to a smaller, more affordable car may also free up some much needed cash to pay off your student loans sooner than later.
Sell Your House
If you are a homeowner in Sacramento, the easiest and quickest way to pay off your student loans with a big chunk of money is to sell your house! Downsizing now to pay off those student loans means having money for your future. You can also take advantage of low-interest rates when you are looking for a loan for your new home.
You will also save in some unexpected places, like the electric and water bill and the actual time it takes to clean your house. You might be able to find a smaller, more energy-efficient home closer to your work and save you time and gas money every day!