You may not be able to get all of your debt forgiven on time or even pay it off completely, but if you have a credit or debit card that can do the job, there’s a good chance you’re on the right path.
Here’s how to get started with this type of card, and how you can keep it going for years to come.
Know what you want to pay off First, you need to know what you’re really after.
Is it a loan?
A car loan?
All of those things are worth considering, but most of the credit cards you’ll need to start with are also useful for your student loan debt.
For one thing, credit cards are great for paying off student loan debts, but they’re also good for paying them off when you’re out of debt and want to get your credit card out of the way.
Set up an automatic payments plan You can do this with credit cards and other consumer finance products, but you need a way to manage payments.
When you use a credit, debit, or prepaid card to make a purchase, the card will send the payment to your bank account at the end of the month.
With an automatic plan, you can do it from any computer, including a smartphone.
You can set up automatic payments on all of these products, too, but these cards offer an added level of convenience.
Here are some easy steps you can follow to set up your own payments plan.
Get your money ready When you make a payment, the bank will automatically transfer money to your account to cover the balance.
If you need more money in a month, you’ll have to contact your bank and ask them to add the balance back on top of your payment.
If the card doesn’t send the funds you need in a timely fashion, the amount you owe will be deducted from your monthly payments.
It’s a pain to have to wait a week or more for your money to be transferred, but the best way to make sure you’re getting your money is to make payments each month.
If your student debt is $100,000 or more, you might want to start setting up automatic student loan payments to be paid off every month.
And if you don’t have enough money to pay everything off on time, there are ways to use your credit cards to pay for things like a car loan or mortgage payment.
Here, we’ll look at how to set your own student loan payment plan.
Find a balance If you’re making monthly payments, you have to make the minimum monthly payment for that month.
The minimum monthly amount depends on the credit card you use.
If it’s a debit card, the balance is the amount the card makes available on your next bill, usually at the beginning of the following month.
(If you don�t have a debit account, the minimum balance is your monthly balance.)
The maximum amount is the balance at the time you make your first monthly payment.
It might not be the same amount every month, but there�s a good reason for that: You may owe more money than you’re able to pay in that month, or you might owe less than you want.
So make sure to pay that balance every month before you make another monthly payment to cover that amount.
Check your balance Every month, look at your account statement.
You’ll see whether you owe money or not.
If there’s anything on your statement that indicates you owe more than you owe, you�re owed that amount of money.
If so, report it to your card issuer.
If not, it won�t affect your ability to make your next monthly payment, so make sure that you get the right information.
Set a recurring payment schedule If you can’t make your payment in the first month, report the balance to your issuer.
Then you can make payments as needed throughout the month, and you can get paid automatically for any outstanding balance you haven�t reported.
Pay off your student debts by the following payment methods (credit cards are included in the calculations) You can make student loan repayments using a credit Card, a debit Card, or a prepaid Card.
Here�s how to figure out which method is best for you.
When to use credit cards If you have credit cards, you may want to use a card with an automatic payment plan and automatic monthly payments for your monthly student loans.
Here is a quick overview of the pros and cons of each payment method.
When the monthly payment comes due, you must report it as an account balance on your student account statement and make it available to the issuer for payment.
Credit Cards are good for a variety of situations.
You’re paying off a student loan balance at a time when you have little or no money left to pay it back.
You�re able to take advantage of the flexibility of the card to pay down your student student loan before the balance comes due. (You don