- Guest Contributor
- May 26, 2022
Repaying student loans of any size can affect your financial goals. You may find yourself unable to repay other debts, save an emergency fund or finance your retirement. Meet your financial goals when you pay off your student loans. Here are six ways to use your creativity as a gig worker and find extra money you can apply to repaying your loans.
1. Sign up for Autopay and Paperless Billing
Your lender may reduce your interest rate if you opt for autopay and paperless billing. Even a reduction of 0.25% can reduce your overall cost. Calculate the amount of money you save, and apply that found money to your loan principal.
2. Reduce Your Everyday Expenses
Cut your everyday expenses and curb impulse spending as much as possible, then use the savings to repay student loans. Sure, cooking homemade meals, reducing your entertainment costs and making other lifestyle sacrifices can be challenging, but think about the benefits. By reducing your debt, you’ll gain more financial freedom and have cash for other expenses like a house or retirement.
If you already follow a bare-bones budget, try these money-saving suggestions.
- Shop for cheaper health, home, renters, and auto insurance.
- Get a roommate to share living expenses.
- Commit to buying nothing new for a month or more.
- Barter for services like rent, meals and pet sitting.
- Rent your parking space.
3. Diversify Your Gig Work
As an independent worker in the gig economy, you know how to hustle. Also, explore additional options that supplement your current income. For example, share your expertise through an ebook or video course. You could also sell photography or plasma, start a drop shipping company, or get paid to take surveys while you watch TV. Get creative as you prioritize paying off your student loans.
4. Hold an Estate Sale
Look around your home and see if you have anything of value to sell. List college textbooks, unused gift cards, clothing, collectibles, electronics, and other items on an online marketplace. Or set up a table during your community’s annual yard sale. You can host regular sales as you declutter your home and make extra cash to repay your student loans.
5. Use Cash Instead of Credit
Consumers spend less when they pay with cash versus credit cards. Adapt this strategy to cut your spending. Then calculate how much money you save, and apply that amount to your student loan principal.
As a bonus, collect coins and $1, $5 or $10 bills in a jar. Challenge yourself to save as much as possible. When you cash in the jar, you could have enough saved to make an extra student loan payment or two.
6. Receive a Student Loans Tax Break
When you file your taxes, deduct eligible student loans interest. You may be able to deduct up to $2,500 in 2022 if you have a qualified loan and your adjusted gross income falls under $175,000 if you’re married filing jointly or under $85,000 for filers who are single or head of household. Then apply your tax refund toward the principal of your loan.
Found money helps you repay your student loans faster. Get creative and use these suggestions as you reduce debt and reach your financial goals.
About the Author: Jennifer Turner writes web content for a variety of clients. As a gig worker, she understands the rewards and challenges of the industry, which is why she prioritizes daily self-care and follows a budget. Find her at WriterAccess.
