How can I effectively save to pay off student loans when I’m earning minimum wage? Is there a realistic amount I can save that would make a significant difference in my debt?

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Posted by Olivia Woods (MONEY FORUMS: 4, Answers: 0)
Asked on April 5, 2016 9:54 pm
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I would suggest looking for a higher paying job. In the mean time, do you qualify for food stamps? I know it’s not the best, but when I was making little money, having my food covered helped me put money toward my loans. Also, embrace the side hustle of working extra gigs! Try being a brand ambassador. If payments are difficult, consider income-based repayment, but make sure you put more money toward debt as you make more money.

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Posted by Melanie Lockert (MONEY FORUMS: 0, Answers: 66)
Answered: April 8, 2016 6:07 pm
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Hi Olivia. The first step to paying off student loans is to not go into any other debt. You have to plug all the leaks before you start to aggressively pay it down. There are two ways you can pay down your debt (once you’ve stopped accruing it.) You can cut your lifestyle way down – get roommates, live with your parents, work as much as possible taking on extra shifts and really watch your spending. Or, you can increase your income (something I’m more in favor of.) There are many, many jobs out there that pay more than minimum wage. Babysitting or being a nanny is one of them (I pay my nanny $16.50/hour.) Don’t feel like you have to be stuck in that job. Watch your spending and increase your income and start to throw as much as possible at the debt. I hope that helps. Without knowing your total amount of debt, I can’t tell you an exact number that would make a dent in it, but ultimately you want to be paying as much above the minimum as possible.

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Posted by Catherine Alford (MONEY FORUMS: 0, Answers: 23)
Answered: April 6, 2016 10:33 pm
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