Repay Your Student Loans!

REPAY YOUR STUDENT LOANS !HOW TO COME UP WITH A DEBT REPAYMENT PLAN FOR

YOUR STUDENT LOAN(S)

• STUDENT LOANS CAN BE A TROUBLESOME BURDEN.

• ALTHOUGH THE INTEREST RATES FOR MALAYSIAN STUDENT LOANS SUCH AS PTPTN, IS LOW(1%), THERE IS STILL AN ADDITIONAL AMOUNT TO YOUR LOAN TO BE PAID.

• WHEN ADDED WITH OTHER LOANS SUCH AS HOUSING AND CAR LOAN, YOU COULD END UP OWING A HUGE AMOUNT.

• YOU BEGIN YOUR WORKING LIFE WITH A DEBT, WHICH CAN BE QUITE DISCOURAGING.

SO COMING UP WITH THE QUICKEST WAY TO PAY OFF STUDENT LOANS IS ONLY IN

YOUR BEST INTEREST.

DETERMINE THE DEBT• FIRST, ANALYSE HOW MUCH YOU OWE IN TOTAL (YOU MAY HAVE MORE THAN ONE

STUDENT LOAN; FOR EXAMPLE FOR DIPLOMA AND DEGREE).

• IF YOU’RE CARRYING ONLY ONE LOAN, YOU MIGHT WANT TO CONSIDER ADDING ANY OTHER DEBT YOU HAVE TO REALLY WIPE THE SLATE CLEAN.

• ONCE YOU GET TO YOUR TOTAL DEBT AMOUNT, YOUR GOAL IS SET.

TERMS AND CONDITIONS• ALL LOANS HAVE THEM THE RESPECTIVE INTEREST RATES, PENALTIES, DUE

DATES, AND LATE FEES THAT COME WITH HOLDING A DEBT.

• THESE ITEMS ALL HAVE THE POTENTIAL TO INCREASE YOUR AMOUNT DUE OVER TIME.

• KNOW THE TERMS THAT COME WITH EACH OF YOUR LOANS AND BE AWARE OF THE RISKS. YOU’LL NEED THIS INFORMATION.

PRIORITY PLANNING• NOW THAT YOU KNOW YOUR T&CS, MAKE YOUR PLAN BASED BY PLACING THE

LOANS THAT HAVE THE HIGHEST INTEREST RATES AND PENALTIES AT THE TOP OF YOUR LIST.

• PAY EXTRA THAN THE MINIMUM MONTHLY PAYMENT TOWARDS THE LOANS AT THE TOP OF THE LIST (REFER TO NEXT SLIDE)

• CONTINUE DOING THIS EVERY MONTH UNTIL THE MOST TAXING BALANCE IS PAID DOWN.

• THEN ADD THAT EXTRA MONEY TO THE NEXT ONE ON YOUR PRIORITY LIST AND SO ON.

SET A MINIMUM PAYMENT• AFTER ADDING UP YOUR TOTAL DEBT,

TAKE A LOOK AT THE MINIMUM MONTHLY PAYMENTS YOU NEED TO MAKE EACH MONTH.

• THEN, DETERMINE IF YOU CAN AFFORD TO PAY MORE. FOR EXAMPLE,

• IF YOUR MINIMUM MONTHLY COMMITMENT IS $200+$100 = $300. CAN YOU AFFORD TO PAY $350?

• IF SO, THAT WOULD BE A GOOD START TOWARDS PAYING THESE LOANS DOWN QUICKER.

• IF YOU ARE STRUGGLING TO MAKE EVEN THE $350 A MONTH, YOU MAY WANT TO CONSIDER A DEBT CONSOLIDATION PLAN (REFER TO NEXT SLIDE).

WHAT IS DEBT CONSOLIDATION PLAN?

• THE COMBINING OF SEVERAL UNSECURED DEBTS INTO A SINGLE, NEW LOAN THAT IS MORE PREFERRED. 

• IT INVOLVES TAKING OUT A NEW LOAN TO PAY OFF A NUMBER OF OTHER DEBTS.

• THE NEW LOAN MAY RESULT IN A LOWER INTEREST RATE, LOWER MONTHLY PAYMENT OR BOTH.

• CONSUMERS CAN USE DEBT CONSOLIDATION AS A TOOL TO MAKE IT EASIER TO GET OUT OF STUDENT LOAN DEBT, CREDIT CARD DEBT AND OTHER TYPES OF DEBT THAT AREN’T

TIED TO AN ASSET.

OUR TIP• SOMETIMES THE LOANS WITH THE HIGHEST INTEREST RATE COULD BE ONE OF A HUGE

AMOUNT.

• PAYING OFF THIS LOAN MIGHT TAKE A VERY LONG TIME AND YOU MIGHT GET DEMOTIVATED IN THE PROCESS.

• SO PRIORITIZING LOANS WHICH HAVE A SMALLER AMOUNT, CAN ALLOW YOU TO REPAY A LOAN QUICKLY.

• THE MORALE BOOST YOU WILL GET FROM SETTLING ONE LOAN OFF COMPLETELY CAN KEEP YOU GOING.

THANK YOU!BROUGHT TO YOU BY SIMPLY EMPOWERING

SOURCE : WWW.BANKINGSENSE.COM/HOW-TO-COME-UP-WITH-A-DEBT-REPAYMENT-PLAN-FOR-YOUR-STUDENT-LOANS/