One of the big risks you take on with student loans starts when you decide to pay them off slowly. By slowly I mean taking 10 or more years to pay off your student loans.
Making the smallest monthly payment you can get away with means the debt will be hanging over your head for a long, long time. You have years and years of payments (including interest) to make on those loans and you have to be constantly mindful of that obligation every single month.
- But what happens if you get laid off?
- What if you have a lifelong dream of starting your own business but you can’t go even a couple months without a steady income because of your debt?
- What if you meet the love of your life and decide to become a stay at home spouse or parent?
Your student loans will handcuff you and become a constant drag on your ability to make even the most basic family and life decisions if you keep them around too long.
Freedom and Peace of Mind
Paying your student loans off quickly gives you more freedom to make decisions in your life. It puts some cushion between you and the ups and downs of life. When you don’t owe anything on your student loans you are no longer a slave to that annoying monthly payment.
You don’t have the worry that wakes you up in the middle of the night stewing about what might happen to you or your family if you lose your job or some other financial surprise pops up.
You will notice a sense of calm and confidence as you reduce the financial risk inherent in having a large student loan hanging over your head. You have more flexibility to make decisions. And flexibility will help you survive and thrive in life. That’s a great way to live.
And it starts by making a commitment to pay down your student loans as quickly as possible.
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