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The idea of never making another student loan payment may be enticing enough to make your lender an offer. But is it possible to settle student loan debt for less than you owe?

In most cases—probably not. However, there are ways to get a student loan settlement if you’re in dire circumstances—though not everyone gets the chance and the risks might outweigh the rewards. We’ll walk you through some options.

Before we dive in, it’s important for you to know that this is an incredibly complex topic. We’re going to try to break it down the best we can, but please understand that this info is general in nature and does not take into account your specific objectives, financial situation, and needs; it should not be considered advice. SoFi always recommends that you speak to a professional about your unique situation.

What Is a Student Loan Settlement?

Let’s start at square one. A student loan settlement is settling your debt for less than what you owe on it and then making affordable repayments.

Settlements probably aren’t an option for people who make on-time, minimum payments. A lender isn’t likely to accept a settlement for less than what you owe if they have reason to believe you will eventually be able to pay back the entirety of the loan.

Typically, you can consider settlement is if your student loans are in default. Once a federal student loan is in default, the entire balance comes due immediately, unlike loans in good standing, where you’ll have a minimum payment due each month.

Federal Student Loan Settlement

If you have student loans that you’re looking to settle, you first need to make sure you qualify to do so. You’ll need to currently be in default—which means that, if it hasn’t already, your loan will go to collections or a debt collector.

A settlement means you’re making a deal to pay off your loan for lower than what you borrowed. This is different than student loan forgiveness, which cancels your loans under certain circumstances.

For federal student loan settlement, there are three potential options to exit default:

  1. Waiver of fees. You’re now only eligible for the principal balance and interest, not the fees.

  2. Half interest and fees waived. All your fees are waived, plus 50% of the interest. So you’re only responsible for the other 50% of interest and the principal balance.

  3. 10% of principal balance and fees waived. You’re responsible for 90% of the principal balance and remaining interest.

Your selection will vary depending on the type of loans you have, your financial situation, and your loan servicer. Most of the time, new loan balances are due within a single fiscal year after the new settlement agreement. New terms will vary, but keep in mind that your new balance must be paid in full by the new deadline.

Settling Private Student Loans

If you have private student loans that you’re looking to settle, your options are a bit different than federal loans. Your settlement will depend on who your lender is and what they are willing to accept. Each private lender is different, so you would have to contact them directly and ask their terms for settlement—if they accept settlements at all.

Alternatives to Student Loan Settlements

Settlement is not without consequences. Your credit will likely take a hit when the loan is in default and once it is settled. But if your loans aren’t in default, there may still be other ways for you to lower your monthly payments.

1. Income-driven repayment plans (IDR).

For federal student loans, you can see if you qualify for an IDR. There are plenty of options: Income-Based Repayment, Pay As You Earn, and Income-Chosen Repayment, among others. They all vary based on the details of your financial situation, like your income and family size.

2. Student loan forgiveness programs.

There are plenty of ways federal student loans can be forgiven—if you qualify. This is where your student loans are cancelled and you don’t have to pay off a balance in a given time, as you would with a settlement.

If you work in public service, education, healthcare, and some other sectors, you have options for student loan forgiveness. To qualify for certain federal programs, like Public Student Loan Forgiveness, you’ll need to have made 120 qualifying monthly payments and work for a qualifying employer to be eligible.

3. Discharging a loan.

Getting your loan discharged isn’t the same as forgiveness, but it does mean your loan may get partially or completely cancelled. You may qualify if you’re disabled, your school closed, or, possibly, you file for bankruptcy.

Getting your student loan discharged is uncommon, but you still might be eligible under certain circumstances. If you’re a veteran with a service-related disability, you receive Social Security Disability Insurance, or your doctor has diagnosed your disability, you might qualify.

Student Loan Refinancing

When you have a few different student loans, it can be overwhelming to pay them all on time every month. And with varying interest rates, it can get confusing.

Refinancing your student loans replaces all of your student loans with one new one. You get new terms and a new interest rate. Your new interest rate is usually determined by your credit score. If you’re having trouble meeting the minimum requirements, you could consider trying to get a cosigner.

Refinancing is a good option if you’re struggling to make your payments on time every month. Refinancing may help you lower payments and possibly your interest rate, depending on your terms. Check out our student loan refinance calculator to get an idea of how refinancing could help your student debt situation.

You may be surprised how much refinancing your debt can shrink your monthly bill.

It’s important to note that refinancing with a private lender means you would lose out on any federal benefits.

Refinancing your loans with SoFi is fast, easy, and all online. Find your rate today!

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The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
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If high account minimums and a lack of investing knowledge have kept you from investing in the past, automated advisors could help you get started. An automated advisor is a software application that uses technology to provide financial recommendations.

The application can use an algorithm to gain an understanding of the investor’s goals, time horizon, and risk tolerance to provide a recommendation based on that understanding. These algorithms can use mathematical probabilities to help people make the most strategic investment decisions under current market conditions, based upon chosen risk management levels.

As with most emerging technologies, the concept of automated advising was developed over time. The first semi-automated finance management tool was used in 2006, and more sophisticated versions appeared in 2008.

The earliest versions were improved upon and as the automated advisors grew in effectiveness, the use of the technology spread. Many predict that hundreds of billions of dollars could be managed through automated applications.

How can you use automated advisors to better inform your investing strategy? We’re sharing answers to key questions, ranging from the role human advisors play to benefits of automated advising, plus how different generations are using this technology and more, along with how we use automated investing in SoFi Invest®, a program that combines high-tech with human guidance.

Automated Advisors vs Human Advisors

When people consider investing using this technology, they typically want to weigh what would be gained and what is potentially lost through automated investing. No two automatic advising opportunities are the same, so it’s important to find the right investment company for your financial needs.

Some companies, for example, rely on investment professionals to develop portfolios, whereas others may rely upon artificial intelligence to determine the proper model portfolios.

However, the vast majority use some type of algorithm to properly place investors into the right portfolio, regardless of how that portfolio is constructed. At SoFi, we provide our clients with the power of technology paired with human advisors.

That means when it comes to automated investing, you don’t have to decide between automated advisors vs human advisors. There are options available, including SoFi Invest, that allow you to benefit from both automated advisors and human advisors, so you can get the benefits of both.

Advantages of Automated Investing

Automated investing allows you to take advantage of powerful investing technology, usually at an affordable cost. The algorithms use advanced mathematical formulas, using them according to best practices in investment planning, giving today’s investors access to technologies previously only available to investors with very large investment portfolios.

Automated advisors have made investing even more affordable with lower account minimums and fewer fees. This has allowed more people to enter into the world of investing—including young adults who previously wouldn’t have had the financial wherewithal to do so.

Automated investing is also a significant plus for people who, prior to its availability, didn’t have advanced knowledge of market opportunities but, to save money, tried managing their own investments.

Choose Your Company Wisely

As this technology is becoming increasingly in demand, more companies are offering it to customers. But, one size definitely doesn’t fit all. So you could look for companies that offer goal planning and portfolio selection and diversification.

When it comes to investing, goal planning is personal. Everyone has a different goal in mind and different opinions on how to get there. You want to choose a financial advisor that listens as you describe your financial goals, one that will help you to create a plan and stick to it.

At SoFi, we work with you to establish your risk tolerance and develop an investing plan to help you meet your financial goals. Automated advisors should also invest in a broad swath of assets, ensuring that their investors are properly diversified to help reduce some risk.

Another important piece of investing is rebalancing. Be sure to ask the advisor if and how they rebalance your portfolio. Rebalancing means you change the asset allocation of your portfolio to return to your desired portfolio make-up. If a certain asset becomes a larger or smaller portion of your portfolio than you want, you can reassess and rebalance. The proportion of an investor’s portfolio invested in stocks and bonds, for example, may be adjusted as part of portfolio rebalancing, depending upon market conditions.

Millennials and Automated Advising

One of the biggest challenges facing Millennials is the wealth gap that is causing them to play financial catch-up. One of the best ways to address this gap is to save and invest more. That’s easier in theory than in practice, especially while also paying rent, student loans, and other bills. The earlier you can begin saving and investing, the faster you can close the wealth gap by benefiting from compound interest and (hopefully positive) returns on your investment.

Closing the gap starts with the first step of investing and there are numerous reasons why automated investing has attracted the attention of younger investors looking to take that first step. These include the low points of entry (low initial investment amounts and low fees) and this generation’s comfort with the digital world. Because Millennials are often on the go, automated investing dovetails with their lifestyle as many companies have developed great mobile experiences.

Baby Boomers and Automated Advising

Because of the ease in which Millennials interact with the internet and online applications, it might be expected that Millennials are fueling the rapidly increasing automated investment movement. And, they’re certainly playing their part.

Perhaps more surprising, Baby Boomers are also turning to this technology in growing numbers, appreciating the ability to save on investment fees. The fewer dollars going to automated advisor fees, they figure, the more money will be available for upcoming retirement years.

And, with Americans living longer, there are more years that need to be funded. Baby Boomers also may appreciate the computerized nature of automatic advising, which frees up time.

Wealth Management with SoFi

At SoFi, we believe everyone should have access to investment management. You can start investing with as little as $100. When you open an account with SoFi Invest, you’ll gain access to both automated and human advisors, so you can take advantage of technology and receive personalized advice from our team of financial advisors.

Having ready access to financial advisors allows you to adjust risk tolerance as your financial situation changes and goals evolve—and this is a service that many companies using robo advisors don’t provide.

Because our advisors don’t get paid on commission, their focus is on creating a solid, personalized plan for you, tailored to your unique financial goals and dreams.

Portfolios are recommended based upon your age, income, and assets. They’re invested in a mix of low-cost, index-based exchange-traded funds (ETFs). We manage the portfolio for you, continually tracking market conditions and adjusting as needed.

Users can access their investment accounts online or from the SoFi app, and our platform is convenient, user-friendly, and intuitive. Investors also have access to SoFi member benefits, ranging from career coaching to community events, and can receive discounts on other SoFi products.

Ready to Invest? Make an appointment to speak with a financial planner about how investing with SoFi could help you meet your financial goals.

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The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SoFi can’t guarantee future financial performance, and past performance is no guarantee.
This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.
Advisory services offered through SoFi Wealth LLC, a registered investment advisor.
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You’re getting ready to start your classes but something unexpected comes up. Maybe you lost your job and are having trouble making rent. Or maybe a parent who was helping with college costs can’t help anymore. It can be hard to come up with extra cash to make ends meet.

But financial aid can help you out. There are individual colleges or non-profits that might offer assistance to students who have emergencies come up. While these loans might seem like a good idea, you have other options when you’re in a financial pinch.

The Basics of Emergency Student Loans

So, what are emergency student loans? Precisely what they sound like—loans available to students in extreme or dire circumstances, typically offered by colleges or universities. If you are the victim of an emergency situation, such as if you’ve been displaced because of a natural disaster, you might be eligible. An unexpected medical expense or job loss may also qualify.

Not every college and university offers emergency student loans, and those that do may have limited funds for emergency student loans and varying eligibility requirements. It’s best to contact your financial aid office to find out what (if anything) your school offers by way of emergency financial aid.

Alternatives to Emergency Student Loans

While emergency student loans can help in life-changing circumstances, they might not always be the best option. Consider these alternatives:

1. Private Student Loans

If you’re having trouble affording all your college costs, you might want to take a look at private student loans. If, after exhausting “free money” options like grants and scholarships and using federal student loans, you’re still coming up short, private student loans can help fill in any funding gaps.

Private student loans are a great asset, but they typically have stringent requirements for approval. Many have strict credit score requirements, and if you don’t meet them, you could be denied unless you have a student loan cosigner who does meet the requirements. And some lenders may not allow cosigners at all.

But if you do qualify, either with a cosigner or on your own, you could receive your funds quickly, depending on your lender. Some lenders send the money straight to the school while others send the funds to you to make the appropriate payments.

2. Grant Assistance

Since some colleges allow for emergency grants , you might qualify for “free money” that doesn’t require repayment.

Emergency grants work a lot like emergency student loans. You’ll need to get in touch with your financial aid office to see if you qualify under your circumstances. If you don’t qualify for emergency grants, you might still be able to get financial help through your school via tuition assistance or tuition waivers.

3. Extensions or Payment Plans for Bills in an Emergency

Help might just be a question away. If you’re struggling with rent, utilities, or other monthly bills, you can try asking for a payment extension.

You could contact your providers, lenders, or landlords and explain your situation. Even extending payments by a couple weeks or a month might help you get your funds together.

Late payments can be detrimental to your credit history. Being proactive about asking for help could prevent an impact to your credit score before anything drastic happens.

After You Graduate

Once you’re done with school, if you need help paying off all your student loans, refinancing might be a smart choice for you. With multiple student loans, refinancing will help you keep track by combining all of them into one monthly payment. Low fees and easy terms can save you when you’re in a bind.

Refinancing your student loans can lower your interest rate and streamline your payments. At SoFi, you can select the terms that are right for your financial situation. For example, if you’re struggling to pay your monthly bills after graduation, you might consider opting for a refinanced loan with a longer term to potentially secure lower monthly payments.

Student loans can get complicated—SoFi is here to help. From helping you finance your education to helping you get out of your college debt, we’ve got you covered.

Check out what kind of rates and terms you can get in just a few minutes.

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The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
SoFi private student loans are subject to program terms and restrictions and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. View payment examples. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

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The last thing any engaged couple wants is to start their new life together by going into debt. And yet, the costs can easily add up fast. First, there’s the wedding and all the events leading up to the big day. Then, there’s finding a place to live and making it your home.

Next, there’s the honeymoon—your chance to really relax and enjoy yourselves before married life gets real. You should remember this trip for the rest of your lives because it was a wonderful time spent together—not because you’re still paying for it. Here are some tips to make financing your honeymoon the least of your worries:

Setting a Limit on How Much You Can Spend

Maybe you’ve saved up for this dream trip, or Mom and Dad have floated you some cash. Boom. You’re done.

If not, you’ll have to come up with a realistic number and make it work. Sit down with your betrothed and have a frank discussion about what you want to do and how you’re going to pay for it. Talk about whether you’re willing to take on some debt, if necessary, and how you’ll pay it back if you do.

Looking for a place to house your honeymoon budget? SoFi Checking and Savings is a checking and savings account that earns you interest on all your cash. Plus, with SoFi Checking and Savings you are your +1 can easily merge your finances and get no account fees. We work hard to give you high interest and charge zero account fees. With that in mind, our interest rate and fee structure is subject to change at any time.

Setting Priorities & Making Trade-offs

For example: Would you be willing to cut the trip short a few days if it meant you could stay at a nicer resort? Would you be willing to pass on a day at the spa if it meant you could go snorkeling or skydiving? Can you do without room service breakfasts so you can have dinner at the Eiffel Tower?

Breaking Down Your Expected Costs on a Budget Worksheet

You can use Excel or any other spreadsheet program, or a simple checklist could do. Just keep in mind that your costs will start before you ever leave for your trip. You may need a passport or specific vaccines if you’re traveling overseas.

You might want new clothes or better luggage. Also consider where you’ll stay, how you’ll get around, what you’ll eat and drink, things you’ll do for fun—and don’t forget about taxes and tip.

Finding Ways to Save

If you have enough set aside in your honeymoon fund to pay for everything you want, good for you—start making reservations. But what if you’ve got a shortfall?

Before you start arguing, crying, or crossing off some of the most appealing plans on your list, start searching for savings:

Talking to a Travel Agent: A good travel agent can help you find honeymoon destinations on a budget and steer you to experiences that will make your trip special without costing a fortune. Yes, you could do hours of research online and book it all yourself, but don’t you have enough on your plate?

Booking early: Not only will you have a chance at better choices for cruise cabins, hotel rooms, and airline seats that fit within your budget, you can stop sweating those details.

Considering an all-inclusive resort: If you don’t have time to hunt down individual deals, consider searching for all-inclusive resorts or cruises, which usually include lodging, meals, soft drinks, gratuities, and some activities and services in the price.

Go on a “mini-moon”: If your honeymoon budget just can’t handle a blowout trip, plan a shorter excursion, maybe closer to home. You can still go luxe with spa days and gourmet dinners at a five-star hotel; just tighten up on other details.

You can always take a longer honeymoon later, when your financial reserves (and vacation days) have had a chance to replenish.

Promoting You Are On Your Honeymoon: Whenever you make a call, be sure to mention this is for your H-O-N-E-Y-M-O-O-N. It might get you a better room, a better table, a free bottle of champagne or some extra attention from staff. If they don’t offer a discount or freebies, ask.

Making a Plan for How You’ll Pay

When you’ve done all you can to close the gap between what you want and what you can afford, it’s time to figure out how you’ll cover the difference.

Creating a honeymoon registry: You can use all the cash gifts you receive to augment your vacation stash, or you can set up a registry (like The Knot’s Newlywed Fund ), where wedding guests can contribute to a general honeymoon fund or make a gift of specific honeymoon activities.

This way, family and friends know where their money is going, and you get to go horseback-riding on the beach or shushing down the slopes in Aspen.

Pillaging your credit card points: If ever there was a time to use up every credit card point and frequent flier mile you’ve ever earned, this is it. If you plan ahead you could get strategic—use cards that earn you points to pay for wedding expenses, then use the points you just earned for the honeymoon, flights, upgrades and more.

Be sure you can make the monthly payments on those cards as you go—or better yet, pay off the balances. Otherwise, you’ll be racking up interest.

Looking into a personal loan: Maybe your finances are temporarily flagging because of the wedding, but you and your spouse-to-be both have a good credit record, excellent salaries, and the wherewithal to make payments on time. If your shortfall will be short-lived, taking out a personal loan might help.

Sure, you could pile those travel costs onto a credit card. But think about it: If the interest rate is high or variable and you can’t pay off the balance on your card as soon as you get back home, you could ultimately be spending far more for every souvenir and spa visit than you planned.

With a personal loan, you can borrow just what you need at a competitive rate and make manageable payments. Knowing upfront what you’ve borrowed could even help you keep better control of what you spend.

Another plus: You can sign on as co-borrowers and have the funds delivered to a joint account, so the loan will belong to both of you—you won’t have to fret or fume about who’s paying for what.

Personal Loans with SoFi

Arguing about finances can put stress on many a relationship—but that doesn’t have to be you.
If a vacation loan sounds like a good option, shop for the best deal you can get. SoFi’s Personal Loans offer competitive rates, great member benefits, and customer service that’s there whenever you need it.

You can pay back the loan early if you like—there are no prepayment fees. And as a SoFi member, you’ll also have access to the financial services you’ll need in the future, from home loans to investing.
If you plan well, cut costs where you can, and borrow wisely if needed, you can start your life together on sound financial footing.

In need of some extra funds for your honeymoon? See if a SoFi vacation loan is right for you.

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The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SoFi can’t guarantee future financial performance.
This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.
Neither SoFi nor its affiliates is a bank.
SoFi Checking and Savings^TM is offered through SoFi Securities, LLC, member FINRA / SIPC . Advisory services offered through SoFi Wealth, LLC, a registered investment advisor.

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Just like visiting the dentist or having your car towed, the debt cycle can add unwanted stress to your life.
Taking on some debt can be beneficial, allowing you to invest in your future by getting a college education or buying a home. But every debt you borrow will eventually need to be repaid. In some cases, the repayment process can seem daunting.

Mortgages, student loans, and car loans can add up to a considerable portion of your monthly expenses. Add in credit card debt and unexpected financial emergencies, and it could feel like your debt is ever-growing. But don’t fear, with a few tips and some strategic planning, you can organize your finances and help to break the debt cycle for good.

Avoiding Credit Cards

Credit cards can be a great tool to earn rewards points and track your spending, but only if you are paying them off in full every billing cycle. Credit cards can make it easy to spend money you don’t have, since you don’t feel the immediate effects of the money leaving your account or the cash leaving your hand.

You don’t have to cancel your cards, since that may negatively impact your credit score . You can store them somewhere you won’t have easy access to them, or even cut them up so you’re not tempted to use them. If you’ve been using your credit cards to pay for your daily expenses and not paying the bill at the end of the month, it may be time to review your spending and see if there are places you can cut back.

Considering Interest Before Charging Purchases

When you’re shopping it can be easy to get swept up in finding a great deal and put it on a credit card. Before you do, you may want to pause and think about what it might cost you in interest.

If you aren’t able to pay off your credit card bill at the end of the month, your sweet deal could end up costing you a lot more than what you originally paid for it.

Before you swipe your card, consider taking the time to evaluate the purchase, the price, and what it may cost you in interest for as long as it will sit on your credit card. You can use a tool like our credit card interest calculator to estimate how much interest you will pay on your credit card debt.

Revisiting Your Shopping Habits

It might be time to take a look at your shopping and spending habits. You can start by reviewing how much money you are spending each month on things like food, clothes, and entertainment. Be honest with yourself and see if there is any opportunity for you to cut back.

One way to create more structure when you hit the store is to shop with a list. While your top of mind association may be grocery shopping, being prepared with a list doesn’t have to apply to just that. Planning ahead could help you save money in all areas of spending.

When shopping for the holidays, birthdays, or other events, set a list of what you plan to buy and a budget to match. This can help you get exactly what you need without going overboard.

Differentiating Between Wants and Needs

Is that new pair of shoes a want or a need? Latest video game? A night out on the town? As you’re trying to get ahead of the debt cycle, you might want to evaluate your wants against your needs. For example, before you make a purchase, carefully think about whether you need it, or if it’s just a want. If it’s something you can live without, maybe holding off is wiser.

Breaking out of a long-term debt cycle requires discipline and determination. While skipping out on wardrobe upgrades or the newest tech gadgets now can seem like a huge sacrifice, when you start making headway on your debt repayment, odds are you’ll feel the reward.

Saving an Emergency Fund

One of the biggest reasons people fall into the debt cycle is their failure to plan ahead. You can’t predict the future, but you can do your best to prepare for it. For example, say your car breaks down and you’re unable to pay for repairs upfront.

Deferring the cost on your credit card can send you deeper into the debt cycle. On the other hand, having an emergency fund on hand can help you prepare for unexpected costs and events.

If you don’t have anything saved up, you can try starting with a windfall—like a bonus at work or your tax refund. You can put this money in a dedicated emergency fund savings account (or another cash equivalent, if you prefer).

Need a place to put your emergency fund? Learn more about opening a SoFi Checking and Savings checking and savings account.

Then each week, you can try to save a specified amount of money in your emergency fund. Even saving just $10, $15, or $20 a week can help you be more prepared when a financial emergency strikes. It can be good to aim to save somewhere between three and six months’ worth of living expenses in your emergency fund.

Reviewing Your Credit Card Statements and Setting a Budget

Credit card debt prevents many people from breaking the debt cycle. Taking action by printing out your credit card statements and reviewing them closely can be a great first step toward getting credit card debt under control. You can also make note of your expenses and see exactly where all of your money is going.

Are you spending hundreds of dollars a month on take-out? Have you been giving in to the convenience of Amazon Prime? Are there a few subscriptions you enrolled in but have since stopped using? Be honest with yourself as you review your spending habits. Note any areas where you can adjust or cut back your spending.

After you’ve had a reality check on your spending, you might want to set up a new budget. You can start by tallying your monthly income and your monthly expenses. Don’t forget to include saving in your budget and set up new limits for your discretionary spending.

Accelerating Your Repayments

If you’re paying off debt, one way to speed up your repayment is paying more than the monthly minimum. Making additional payments on your debt each month could not only help you eliminate your debt more quickly, it could also potentially reduce the money you spend in interest in the long term. Even just $25 a week could have an impact on your repayment.

There are a couple of debt repayment strategies that could help get you back on track. First, there is the debt snowball method. This method encourages you to start focusing on your smallest debt, regardless of the interest rate. While making the monthly minimum payments on all of your debts, you would throw as much extra money as possible toward the smallest debt.

Once it’s paid off, you’d take the minimum payment you were paying on that first debt and add it to the minimum payment on your next-smallest debt. Repeat the process and let the snowball work its magic. While this method may not reduce the money you spend in interest, the rewarding feeling of seeing your debt dwindle could encourage you to stick with your repayment plan.

Another debt repayment strategy is the debt avalanche, or debt-stacking method. Unlike the snowball method, which is structured around behavior and motivation, the avalanche method is about streamlining your debt repayment so that you save the most money on interest. It can require more discipline, but keeping track of how much you are saving in interest can be a great motivator.

With the debt avalanche method, you would make a list of all your debts by order of interest rate, highest to lowest. While making your minimum monthly payments on all the debts, “attack” the highest interest rate loan with as many extra payments as you can. For extra motivation, you can use an extra payment loan calculator to keep track of how much you’re saving in interest.

Living within Your Means

With all the fancy gadgets, cutting-edge technology, constant advertisements, and the rise of social media, it can be easy to get swept up in having the best and fanciest of everything. But living in debt to sustain that can ultimately add stress to your life. You can rise above this by living within your means.

Conventional wisdom is pretty straightforward: don’t borrow more than you can afford. Before you borrow, review your budget and understand how much you can realistically afford to spend on a given item.Then stick with what you already determined you can pay.

Getting a Side Hustle

Another great way to help end the debt cycle: find some extra income by getting a side hustle. You could use money you earn from your new side gig to make extra payments on your debts. Not sure where to start? Sometimes it’s a straightforward as taking a look at your skills and interests and seeing where you may be able to find an extra job or make some passive income.

There could be a ton of different opportunities to find a side hustle that fits your skills and works with your current schedule.

From driving for a rideshare to freelancing as an editor, or even selling your crafts at an online marketplace, with a little legwork, you could find a side job that you love, while also speeding up your debt repayment.

Consolidating Credit Card Debt with a Personal Loan

If you’re currently living in debt, it can feel like there is no way out—but with some strategic planning and a bit of discipline, you may be able to get out from under it. One option to help you repay your debt is a consolidation loan.

A debt consolidation loan is type personal loan you could use to consolidate other sources of debt, such as credit card debt. If you’re repaying a number of high-interest debts, a consolidation loan could help you get your repayment plan on track, and lower your overall interest rate which could reduce the amount you spend in interest, depending on your loan term.

When you take out a debt consolidation loan with SoFi, there are no origination fees or prepayment penalties. If you’re ready to see how a debt consolidation loan from SoFi can help you break the cycle of debt, you can apply easily online and get a rate quote in less than two minutes.

Learn more about SoFi personal loans today!

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