How to Finally Get Relief from Your Student DebtOct 19, 2017
If a heavy student loan burden is weighing on your mind, you’re not the only one with student debt stress.
A recent BDO poll revealed that student debt is top of mind for many Canadians. Almost three-quarters of graduates under 40 who had post-graduation student debt admit they have regrets about their student debt.
Graduates also say that their student debt has caused them to delay important life events, such as buying a house, getting married or starting a family. Student debt was also the reason why many Canadians in their 20s and 30s haven’t been able to save enough for emergencies or put money away for their retirement.
Although tackling your student debt isn’t easy, it is possible to find debt relief. Here are three important things to focus on:
Staying motivated is key when it comes to finding relief from student debt. Start by setting some goals. Try to make your goals as specific as possible and also include a timeline (i.e. pay off 50 per cent of student debt in two years). It’s also important to make sure that your goals are realistic and achievable.
This Financial Goal Calculator can help you create SMART goals (Smart, Measurable, Achievable, Realistic and Timely).
Not only is it important to motivate yourself to tackle your debt, it’s also important to stick to your goals and stay dedicated. As finance blogger Krystal Yee admits, tackling debt is definitely not easy and does require some sacrifices.
Committing to specific spending cutbacks is one way to stay dedicated to your goal of reducing or eliminating your student debt burden. Spending cutbacks create a kind of domino effect: less spending frees up funds for debt repayment, which pays down your debt more quickly, which saves you money in interest payments.
Cutting back can be as simple as eating out less, finding a cheaper gym membership or cancelling your Netflix account. Check out NerdWallet’s debt free calculator to see how much you can save by making simple cutbacks.
Tackling your student debt load also involves a little research on your part. Learn about the debt relief options, such as debt consolidation, that may be available to you. You’ll find a wealth of information on Canada.ca, including tips for paying down your student debt more quickly.