Tertiary education “opens the door” to a lot of careers and has become very expensive. The impact of the tuition fees thereof is felt mostly by those who don’t have bursaries or those who don’t qualify for grants or any sort of funding.
There is currently no indication from the government that historic debt from the NSFAs debt will be scrapped. And many might still have to repay the tuition debt topped up with other debt. When we leave university, some leave with debt, being it student loans, the gym membership we never used or clothing accounts.
We all want to start adulting without any debt but sometimes it’s quite impossible. And the more you don’t pay back your debt the higher your interest will be. If you want to save on interest, you would want to do all you can to get rid of your debt.
Allocating a huge part of your salary to pay the debt accumulated during your varsity years will ensure that you pay off your debt quicker. But it means you will have to sacrifice a lot.
It is also of utmost importance that you set-up an emergency fund. Where you will have your salary×3. This will help you when unforeseen circumstances befall you. For example the loss of your job, unexpected hospitalisation which exhausts your medical aid and you have to pay the balance. Your emergency fund will help you and ensure you do not touch your savings.
Start by calculating your expenses and how much you actually need to survive. Set realistic budget goals so you don’t end up breaking your budget and losing your morale over time.
There isn’t a specific way to pay off the debts you incurred during your student years because everyone has different expenses and priorities. But it is important to constantly and patiently pay off your debts to make sure you don’t have huge debt in the future.