Just graduating from college already owing money to someone is not a good feeling after coming down from the highs of the parties and celebration that goes along with graduation. If you’re anything like me you have a little or a lot of debt that you need to pay off so you can really move to the next chapter of your life without dragging a reminder that keeps getting bigger every month. These are my three tips on attacking that debt to minimize your costs.

1. Start saving early- If you know that you may be graduating in the next year or so, try finding an additional job or some way to make a little extra money. 75-100% of that money needs to go into a high interest savings account. A savings account as opposed to a Certificate of Deposit (CD) or investing at this point will allow you to have continually access to the money so when the time comes to pay your first payment you are well prepared. As you see your savings grow you have to resist the urge to pay the loan immediately. Now I know this sounds a little crazy but guess what, the money in that savings account, whether it be $100, $500, or $1000 is earning interest the longer it stays there. With small account balances the interest may only be cents but in your current situation you need every penny to get this debt gone fast. After you graduate and are close to the end of your grace period of the loan, now is the time to make entirely sure that you can put everything that you comfortably can towards this debt. The more you are able to pay the less you’ll have to pay as interest.
2. Don’t go crazy now that you have an adult job – Now I know not everyone gets that amazing job that you were planning for after graduating but in any case don’t go blow your money on things that you haven’t been doing over the last few years in school. While taking a dream vacation to reward yourself for all the work you’ve done may sound amazing it doesn’t make financial sense. You have thousands of dollars that you owe yet you just went on your trip and spent another couple of thousand dollars when that could have paid a portion of your debt. Changing your lifestyle from broke college student to big ballin’ graduate comes at a cost that you can’t honestly say you can afford.
3. Make a plan going forward – If you’re unable to pay all of your debt by saving and you recognize that early go ahead and set that goal for your initial payment and figure out how much you will be able to pay to get that debt gone as fast as you can. Once it is gone you’ll have accomplished something that many people take forever to do and now you have an even better reason to take that extravagant trip to celebrate both your graduation but also not owing anyone anything. Congratulations now go live your life!