Things You'll Need:
- Pen and paper
- Loan agreement
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Step 1
Write down a list of all your expenses, including electric, gas, rent, grocery expenses, telephone, car insurance, automobile fuel needs, your regular student loan monthly payment amount and other loan payments, and health insurance and life insurance. Add all of your living expenses together and write down your total monthly expenses. This is your "cost-of-living" allowance.
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Step 2
Deduct your cost-of-living allowance from your net total monthly income and identify the total amount you have in excess each month.
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Step 3
Keep ten percent of your excess cash flow in your bank account for any emergency needs. Apply the remainder toward doubling up, if possible, on your monthly student loan payment. If you don't have enough money to make double payments, you will need to generate additional income.
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Step 4
Obtain a part-time job apart from your normal full-time employment and apply your monthly net earnings from that job to your monthly loan payments. If you are fortunate, this additional money each month will permit you to more than double your monthly student-loan payment.
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Step 5
Eat at home rather than dining out at restaurants. With careful grocery purchases through frugal comparison shopping, you will spare an additional amount you may apply toward paying down your student loan.
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Step 6
Refrain from buying a new automobile and the latest in computer or entertainment equipment. Put the money toward paying off your student loan first, since these items will still be around once your debt has been paid.
