Anyone with student loans has likely done extensive Googling:
How to pay student loans off faster
How to save more money
How to make ends meet
So by now, you’re probably well familiar with the basic tenets of how to scale back: couponing, limiting your nights out, skipping the latte.
While all of that is good advice, what if you’d like to make more of an impact? What if instead of making small changes that add up over time, you’d like to make big changes in the short-term to truly impact your debt payoff goals?
There are a few ultra-frugal living tips you can follow to significantly lower your bottom line. And since it’s only for the short-term, they’re pretty easy, too.
Frugal tip #1: Kick your soda habit
You don’t smoke, you don’t overdo it with nights out at bars, and you eat a pretty balanced diet. Who is going to fault you for a soda every now and again, especially when sodas are one of the more economically priced items at the store?
The average American household spends $850 dollars each year on soft drinks. Even more health-conscious adults can end up shelling out close to $20 per month in cans of sparkling water (La Croix anyone?). Fruit juice is even more expensive.
Try only drinking water, tea, or coffee for a year and to see how much you can save. Remember, it’s not forever.
Frugal tip #2: Bulk cook
Meal planning is often what penny pinchers turn to first when looking for ways to free up money for debt repayment. We’re suggesting you take this one step further and bulk cook all your meals for the month during one weekend.
This allows you to plan a menu around what’s on sale, save more money in the long run by buying in bulk and avoid the temptation of eating out because you have “nothing” at home for dinner.
Frugal tip #3: Go vegetarian
Speaking of modifying your eating habits, going meatless can have a large impact on your waistline, your budget, and your debt payoff success. Americans love their meat, but it’s expensive and only going up in price. Research suggests vegetarians can save $750 a year more than meat eaters.
Even if you can’t commit to completely going vegetarian for a year, try planning at least 70 percent of your weekly meals around meatless options. If you save $3.50 a day by eating vegetarian and go meatless five days of the week, that’s around $70 per month, or $840 a year. Add this money to your student loan payments, too, and you’ll be done with repayment in record time.
Frugal tip #4: Downsize
If we’re talking about truly impactful changes in small amounts of time, you have to look at what you’re spending on your housing and utility bills.
Downsizing might not be feasible for everyone (such as homeowners or people with families) but if you can feasibly reduce your living expenses to pay off debt faster in the short-term, you should consider it.
Say you move from a $1,100 a month apartment to one with monthly rent of $700. That’s $400 extra dollars a month — or $4,800 over the year — to put toward extra student loan payments. Say you have $25,000 in student loan debt; you’d pay back roughly 20 percent of the principal you borrowed back in just one year!
Frugal tip #5: No-spend Christmas
“No! Not Christmas!”
If you’re trying to be ultra-frugal for just one year, Christmas can be a large source of savings for many adults. The average person spends a whopping $882 on the holiday gifts each year — double this amount if you travel to be with family.
However, few consider cutting Christmas expenses because it’s both a family tradition and a cultural norm.
You don’t have to be an Ebenezer Scrooge for all eternity; consider a no- (or low-) spend holiday for just one year.
Be up front and honest with your friends and family about how it’s for your debt payoff goals, and try to talk to them early so as not to blindside them after they’ve already purchased gifts for you. There are many ways to have a no-spend Christmas while still gifting your loved ones with something special.
Take that money from your “no-spend” Christmas and apply it to your student loan debt and you’ve just given yourself the gift of thousands saved in interest.
Frugal tip #6: No shopping challenge
Of all the crazy-frugal things to do for one year to have a major impact, this one is decidedly the least fun (although having a “no-spend Christmas” may come close).
Try not shopping at all for 365 days. One pair of roommates were able to save over $55,000 in one year by making their own household items, growing their own food, and thriftily entertaining.
Many of the above suggestions may not fit into your preferred lifestyle, but in order to truly affect change in any area of life, you’ll have to seriously shake things up in order to see big results. Take a year to cut back and see what kind of dent you can make in your student loans — then get back to living your life.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
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1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.30% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.47% – 6.30%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.69% – 7.21%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|