For many people, student loan debt feels like a kind of quicksand that’s pulling them away from the greener shores of the life they truly want. They’re desperate to grab hold of the ability to buy a house or a car, extra funds for hobbies or further enrichment, or even a high credit score. Saddled with six-figure student loan debt, it makes them feel even more terrible, like the quicksand is up to their nose.
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Luckily, you don’t have to be a financially savvy Indiana Jones to get yourself out of rock bottom and into the lush land of your personal financial goals. All it takes is some old-fashioned know-how and a willingness to live frugally for a while.
GOBankingRates interviewed Brooke Hiddink, founder of HighTicket.io, who built a business focused on dropshipping high-ticket items after being $170,000 in debt. Hiddink was able to pay off his debt using some common sense solutions, and the good news is, you can do the same if you follow his tips.
Earning passive income isn’t hard, and you can start this week.
Create a budget and cut unnecessary expenses
Hiddink acknowledges that cutting non-essential expenses is easier said than done, but being able to put the extra money towards your loan repayments can make a big difference. Creating a detailed budget that outlines your income and the expenses you need to control will help you determine what is “unnecessary.” From there, you can set aside a portion of your income each month towards your loan repayments.
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Start a side hustle
To make sure you have enough money to cover your monthly loan payments or to pay them off faster, Hiddink recommends starting a side hustle. Freelancing, dropshipping, or taking on the occasional one-off job are all good part-time jobs, he said.
Automate payments
Late payments are one of the most common reasons for mounting interest, fees, and penalties on your loans. To avoid this common pitfall, Hiddink recommends automating your loan payments — and he’s found that you might even be able to get a discount on your interest rate when paying some creditors that way.
Pay more than the minimum
While this may seem particularly harsh, Hiddink said that even small extra payments can reduce the total amount of interest he has to pay, helping him pay off his debts more quickly.
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This article originally appeared on GOBankingRates.com: I paid off six-figure student loan debt in five years with everyday money-saving tips — and so can you