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As may readers of this article already know, debt is a common issue among people today. In fact, around 80% of people are in debt currently. But, student debt stands in a class of its own. This is because student debt hold a few unique factors which separate it from other loans and owings.
Firstly, a student loan is one of the hardest loans to default on. It’s also not forgiven by bankruptcy, unlike almost every other type of debt. Interest rates can also vary depending on whether you get a private student loan or a federal loan. This can lead to expensive repayments.
Secondly, student loans are not directly given to you. Instead, they are provided to the college or institution you’re attending. If you’re receiving a private student loan, you also probably started repaying it immediately. This is instead of after graduation, as is the case with federal student loans. You may also have a co-signer who you’d have to worry about if you couldn’t make repayments.
This, along with rising college costs, make it obvious why student debt has crossed $1.4 trillion in the U.S. It is now the highest form of debt in the country. It also takes up to 25 years to be forgiven on, after a lengthy process.
But, if you’re reading this, you probably already know how much of a nuisance student debt is. The big question is, how can I get rid of it quicker?
Fortunately, the best way to deal with it is the how you might deal with any debt. Namely, increase your income or lower your cost of living. Because many students and graduates already live a very low-cost lifestyle,this means increasing income is a safer bet.
Below, we list a few side hustles you can do to help augment your income and pay off your student debt quicker.
Side Hustles To Pay Off Your Student Debt
One of the most common side hustle jobs is freelance work. The rise of online freelance work and sites like freelancer.com and upwork.com makes them available to everyone it’s a fast and easy way to boost your income.
There are also a wide variety of jobs available, meaning anyone can find one that suits their skills. Examples of these jobs might include social media work, writing articles, or designing.
These jobs may require a high volume of work to be done, but they can be done anywhere and usually have flexible deadlines. So, mixing these with a normal 9 to 5 job can help you pay off your debt quicker.
For those who prefer bricks-and-mortar jobs, moonlighting is one of the oldest ways to bring in some extra cash. Common jobs include waiting, security work or even lifeguard work for those who can swim.
Many of the jobs can be low stress and pay well. The one drawback to this is a reduced amount of personal time. This can get tiring after a while. So, taking a break from moonlighting every now and again can help you sustain your side hustle and your extra income.
“Share economy” income
A huge source of easy extra income, which a lot of people overlook is “share economy” income. Ride-sharing like Uber, renting out a spare room you have on Airbnb, or renting your car are all examples of share economy sources of income.
These are great because most of them are sources of passive income, meaning you don’t have to actively work for the extra money. This means you can increase your cash while keeping your time free.
So, these can make a great addition to a freelance or moonlight job to massively increase your cash flow.
Temporary or “once-off” jobs
For students or graduates who are just looking for a way to fight a slow month, once-off jobs are great. Examples of these include promotional work as a brand ambassador, or labour work on a construction site.
These can all pay well and have no strings attached. The drawback here is that these jobs will rarely offer regular work. So, they are only useful for times where money is tight.
Selling items online
This is a side hustle that is usually used by kids to collect some extra money. But, it can be just as useful for students or graduates. Posting old, unwanted items on eBay or Amazon can make you a lot of money.
But, like the once-off jobs, it isn’t a sustainable way to increase your income. So, selling your old stuff online is best suited for if you hit a rough patch and need some extra cash for your student repayments.
Wrap Up And Take Home Points
Student debt is one of the biggest, and most persistent, debts you will ever have. Depending on the type of student loan you have, you may have to start paying it back quickly. High and variable interest rates also means your repayments can be steep.
Increasing your income can offer a way to pay off your loan quicker and save you a headache. It can also help you repair your bad credit, which can help you get future loans. You can learn how to repair your credit to keep yourself informed on its benefits.
By combining the above job opportunities, you can add to your income from your regular job and make repayments more comfortable and keep your credit rating high.
Some of this you can do without putting in any additional work too. This can leave you with more disposable income to spend on yourself.