How to Pay Off Student Loans Fast: Avoid Paying Unnecessary Interest

0 Hey whats up men this is Mario and in todays video I am going to talk about How to Payoff your Student Loans Fast so you can avoid paying unneeded interest now you men are probably wondering what is going on over here well guys this is Oaxaca Textile Mexican Art and if you stay with completion I will explain more of what this art implies I purchased this piece in Chapala Mexico and I am going to describe to you why this is important at the end of the video so stick around guys back to the video so lets speak about Student Loans I was in fact very lucky to graduate from Northern Illinois University with a Bachelors Degree in Finance when I finished I did have Student Loans I grew up with the mentality simply maturing with my household my moms and dads that debt was bad so when I finished I worked really difficult to pay that off as quickly as possible and there is a lot to that, that I learned from paying that off and how I conserved a great deal of money on interest but there is more to it guys the reason Paying Off Student Loans is so essential is because you can not get rid of Student Loans you can not even eliminate Student Loans even if you submit Bankruptcy people Student Loans are basically like Taxes the federal government will go after you whatever it requires to get that cash back now if you stop paying your Student Loans the government might even garnish your incomes that means by law they can in fact begin taking money out of your income to pay your trainee loans because you didnt pay them so men in this video I am going to teach you what actions you need to require to pay your Student Loans as quickly as possible so can save an entire bunch of cash on interest and also pay it off sooner than 10 years and this can definitely set you up for success for the rest of your life so do not forget to smash the like button and subscribe to this channel thank you quite for your support men alright men lets get started so you guys know the typical student loan in the United States is around 30,000 dollars and the average length of repayment is around 10 years at a 6 percent interest that indicates that the typical student is going to pay around 10,000 dollars in interest over the life time of that loan the problem takes place is when trainees actually end up paying only the minimum payment which is fifty dollars and when students do that when students pay only the fifty minimum dollar payment their initial Student Loan of perhaps 30,000 dollar can swell up to fifty sixty seventy even eighty thousand dollars guys alright guys so what I am going to do really rapidly is offer you an example of how things can go incorrect if you start paying bare minimum on your Student Loans so I am going to reveal you how to get this App so if you desire to go to the App Store and search for Student Loan Calculator and you see this Student Loan Calculator with the white hat this is the one that you wish to download it needs to be free of charge and now … I have actually already included these numbers the numbers are I already consisted of 30,000 dollars once again like I discussed before 30,000 dollars is the average Student Loan financial obligation in the United States with around average 6% interest and the repayment duration is 10 years that is the typical payment duration so if you press compute this states that your monthly payment in order for you to pay your Student Loans in 10 years your month-to-month payment is going to be $333.06 and if you see these red numbers that indicates that you are going to be paying $9,9967 $9967 $9967 $9967 in interest in overall interest and if you take a look at the right hand corner the $39967 that is the overall cost of your Student Loan over that period so when you borrow 30,000 dollars you will be paying an overall expense of $39967 over a 10 years period now if you scroll down you will see the Amortization Graph its in fact truly really cool now I am going to offer an example of what occurs when you do end up paying less than the needed total up to pay it in 10 years what occurs is your loan period in going to increase so to offer an example your loan period can be 20 years instead of 10 years so if you are paying 50 dollars a month it could increase to 40 years or more but this is an example if you instead of paying $333 excuse me rather of paying $333 a month to pay it off in 10 years and you decide to pay $200 a month you will end up paying $21583 in interest so your overall cost overall is going to be $51583 so it worsens gradually so lets say you end up paying less than $200 lets say that you understand you end paying $180 a month that implies its going to take you around its going to take you around 30 years to pay your Student Loan and you are going to be paying a total interest of $34752 so the total cost of your loan is goin to be $64,752 so the original $30,000 you really borrowed to spend for college now is going to cost you double the cash since you chose to pay less then the quantity needed to settle your loan in 10 years so this is were trainees get in problem people so this is were things can go really wrong with Student Loans so how do you avoid that how do you alter that how do you get rid of that issue so this is what you do so again your initial plan is 10 years that is the average initial plan 10 years so my recommendation is to make additional payments so lets state that you decide you know what I got money in my pocket I got I am not going to go to the bar this weekend I am going to save myself one hundred dollars for the month so I can pay that towards my trainee loans so if you make an extra $100 $100 payment every month on your Student Loans you will really I guess your regular monthly payment will be $433.06 you are really going to pay less interest you are going to pay $6921 which is less than $10,000 so you are going to conserve it state right here in green you are going to conserve $3046 in interest and you are going to be paying your Student Loans 2 years 2.83 years previously a bit over 2 years and a half previously so rather of 10 years you are going to be paying your Student Loans around 7 years and half which is quite nice so lets say that you choose you understand what I am going to provide $200 extra on my Student Loans to pay them off even faster perhaps you stop going not only you stop heading out to the bars but likewise you stop heading out to consume so you press the determine button now wow naturally you are going to be paying a lot more you are going to be paying $533.06 $533.06 a month however hey you are just going to be paying an overall interest of $5317 you will be saving $4,650 in interest this is cash saved and you will be paying your Student Loans in four years in 4.42 years which is around 4 years and 4 months something like that so hey so instead of ten years you are going to be paying your Student Loans around 5 years and four months 5 years and 4 months thats pretty great guys alright and once again it keeps going on and on so the more additional money you pay upfront towards your Student Loans the faster you are going to be paying your Student Loans and the more cash you are going to be conserving so I am going to put $300 to sort of see what happens if you decide you know what I am going to stop spending money on things that I do not need on desires so I am not going to be investing cash on desires I wish to settle these Student Loans as soon as possible so every additional extra money that I have that I will generally invest on wants like heading out to eat purchasing things that I truly do not need I am simply going to put them on my Student Loans male see what occurs so if you do that your monthly payment will go you will be paying $633.06 $633.06 your overall interest will be $4,325 so that is overall interest you are going to be paying from the $30,000 you obtained you will be conserving $5,643 because period and you will be conserving 5.42 years 5.42 years conserved so that indicates that you are going to be paying your loan in around 4 years a little bit over a bit over 4 years in a half so that is the secret men that is the secret to paying off your Student Loans as quickly as possible it does feature sacrifices I am not going to lie men it is going to it is going to take some sacrifices but the truth is men you have two alternatives you either might make more earnings meaning you might work extra hours do some overtime or perhaps get a part-time job or side hustle to make extra money to pay for your Student Loans or you can make some sacrifices instead of investing cash on things you do not require on desires like out on the weekends spending cash on restaurants or on beverages or home entertainment you can use that cash to settle your Student Loans for those of you guys who require some aid budgeting who have no idea hey where am I going to get this extra money to pay for my Student Loans based upon my existing budget I do not desire to get an extra task I truly do not have time for that where can I get the additional money so I can pay down my Student Loans so I developed this video people How to Budget your Money the 50 30 20 Rule of Money were it talks about your requirements your desires and your savings and financial investments and how you can budget your money cash so you can discover additional money to pay down your Student Loans now I am going to put up a little bit link you will see a pop up link on the right hand corner just click that link and it will take you to watch that video well people I wish to quickly thank you for sticking all the method till the end however as promised I am going to discuss this art piece and what it represents well people this is a conventional Oaxaca Textile Art this scene this art this scene actually portrays the Aztecs and the starting of the City of Tenochtitlan well men you men might be wondering what is the City of Tenochtitlan the City of Tenochtitlan is actually contemporary Mexico City so practically legend has it that the Aztecs were following the prophecy of the god of sun and war the prophecy mentioned that when they discover an eagle sitting on top of a cactus eating a snake that will be the spot where they must settle to develop their new city the City of Tenochtitlan contemporary day Mexico City was established on this prophecy this incredible lovely prediction of the Aztecs discovering the eagle sitting on top of the cactus consuming a snake which is contemporary Mexico people so if you men can see we have the eagle right here we have the cactus now only thing that is missing right here is actually the snake however if you people see the Mexican Flag in the Mexican Flag you will see the eagle and the snake in the mouth and the cactus so thats were that comes from now you men will understand why that is truly important the other factor why I am bringing this up guys is that I am in fact going to Mexico City in January so I am extremely very thrilled I am going to develop a lot of videos that cover art history culture of Mexico City and I am likewise going to integrate it with Finance so ideally you men enjoy it so hopefully anticipate that since I am really delighted to do that I value if you guys make some remarks Subscribe to this channel if you people can hashtag watched till the end it will actually assist with the YouTube algorithm and will actually help support this channel to grow thank you quite men I value it until the next time Read More: The EASY Budgeting App That Changed My Life|| Reality Personal FinanceAs found on YouTube

Originally posted 2020-03-18 12:54:17.