If you’re a student, you’ve probably received a few loan checks in your day. It can be tempting to spend that money on things you want, but it’s important to remember that you’ll have to pay that money back with interest. A better option is to use your student loan check to pay off debt. Here are 5 tips for using your student loan check to pay off debt:
- Make a budget:
The first step to using your student loan check to pay off debt is to make a budget. You should figure out how much money you have coming in each month and how much money you have going out. Once you have a budget, you can start to look for ways to cut back on your spending so that you can use more of your money to pay off debt.
- Make a list of your debts:
The next step is to make a list of all of your debts. Student checking account promotions should include the name of the creditor, the balance of the debt, the interest rate, and the minimum payment. This will help you to see where your money is going each month and it will also help you to prioritize which debts you want to pay off first.
- Figure out which debt to pay off first:
Once you have a list of your debts, you need to figure out which debt you want to pay off first. You may want to pay off the debt with the highest interest rate first, or you may want to pay off the debt with the lowest balance first. There is no right or wrong answer here, so you should choose the option that makes the most sense for you.
- Make a plan:
Once you’ve decided which debt you want to pay off first, you need to make a plan. You should figure out how much money you can realistically afford to put toward your debt each month. You may need to make some sacrifices to free up some extra money each month, but it will be worth it in the long run.
- Start making payments:
Once you have a plan, you can start making payments. You should make sure to make your payments on time each month and to pay more than the minimum payment if you can. The more money you can put toward your debt each month, the faster you’ll be able to pay it off.