4 Reasons Why You Should Free Yourself Of Student Loans ASAP
I went to an out of state college with a price tag that my parents nor I could really afford, so of course, we took out all types of loans to pay for my education. I just had to tack on even more student loan debt 4 years after graduating from undergrad to pursue my master’s degree in Forensic Psychology. Not realizing that I actually had to pay all of this money back (I’m totally joking guys), I borrowed so much extra money just so I could live lavishly as a fly 20-something carefree black girl. Just ballin’ on a borrow…like why? I’m getting sick just thinking about how crazy that was!
All the latest clothes. Happy hours. Brunches. Anything and everything I wanted, I made sure I got by any means necessary.
Today, I have NOTHING to show for those extra dollars that I borrowed and blew by being completely reckless. Well, except for the hefty amount of student loans that need to be paid off (eek).
Student loan debt is nothing to be excited about. Although it affords many the opportunity to obtain an education where they couldn’t afford to otherwise, the impact that loans have could potentially be damaging long term if you aren’t careful. That’s why it’s imperative to get out of student loan debt as soon as you possibly can. It will literally change your life. I don’t wanna be paying off debt until the day that I die. I wanna be able to enjoy the fruits of my labor and turn up for once! If you’re reading this, then you probably feel the exact same way that I do. It’s time for us to truly live our best lives!
Ok, now let’s examine a few specific reasons why you need to give Sallie her coins sooner rather than later.
1. You’ll Save Some Money
You are literally throwing away thousands of dollars on interest from your student loans. That’s why even though you’ve been paying on your loans for years, your balance hasn’t budged that much. In fact, your current balance may be higher than the original amount of the loan you took out! You are losing so much each month; just think about what you would be able to do with that money if all of your debts were paid off. I bet you have a few things in mind!
2. Your Debt-To-Income Ratio Will Decrease
Did you realize that the amount of debt you have vs. the amount of money you make could be negatively impacting you when it comes to getting a house, car, etc.? For example, if you make $20K a year and have over $200K in debt, that’s a bit much. Your student loans could be what’s holding you back from living the life that you want for yourself. Once your loans are paid off, you won’t have that responsibility of making those payments each month, which could allow you to start to begin wealth building and investing more into your future. How does early retirement sound? Great right? If you don’t start putting a dent in your debts, all of those things will be even harder to achieve
3. You’ll Have Peace Of Mind
Listen, being in debt will have you stressed out! It can really have you going crazy. Once you’re able to pay off your student loans and become debt free, you’ll be able to release the burden and worry that you’ve had over the years. Because of this, you’ll be able to focus your energy into things that really matter to you. Your quality of life will dramatically improve!
4. You’ll Be Free From The Bondage Of Debt
One of my favorite bible verses is Proverbs 22:7.
"The rich rule over the poor, and the borrower is slave to the lender." Sheesh, that is super powerful, right?
Who wants to live like that? Always having to owe someone else? Don’t you want to be the lender? The one who gives and helps as many people as you can? Once you break free from the bondage of debt, things will shift. You’ll finally be in control. How awesome is that?
I know that if you make major sacrifices now, you’ll be in a position to be financially secure and lead a more fulfilled, happy life. This means that you are going to have to learn to say no sometimes to some of your family and friends when they invite you out, pass on the latest release of shoes, and those lavish brunches you enjoy every week. Now, I’m not saying that you have to be a hermit and be miserable and not enjoy yourself, but you do have to do some cutting back. Thinking back to your why and the big picture will be your motivation to keep going through these sacrificial times. The money that you’ll be saving from cutting back could be put towards your debts and bring you that much closer to achieving your goals.
Paying down debt doesn’t have to be as hard as we often make it out to be. You just have to have a clear understanding of what you want to accomplish and what you need to do to make it happen. If you want something bad enough, you are willing to do whatever it takes to get it.
You got this boo! I’m rooting for you every step of the way. We’re in this thing together, going through the trenches as we strive to become Debt Free Black Girls. Let’s get it!
Read more from the original post found on debtfreeblackgirl.com.
Photo credit: Kim Carpenter