The CEO and creator of the student loan repayment website studentloanhero.com came up with an interesting strategy when he wanted to tackle over $100,000 in student debt. Move states. He was living in New York City, which has one of the highest income tax rates in the nation. He decided to move to Austin, TX, where there is no state income tax or municipal taxes, and living expenses average about 20 percent less overall. This move freed up over $15,000 of annual income, which gave him more wiggle room to deal with his student loan debt. He was able to start making extra payments, and he designed a tool on his website that can calculate how much money people could save by moving to a state with no income tax. Keep reading to learn what states don’t have income tax, and how much you could save by moving.
Where Should I Move to Save Money?
- No income tax states: Texas, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming. These states could offer you more economic freedom.
- States with the highest income tax: Oregon, Washington, D.C., Iowa, New York, and Idaho. Oregon charges the highest income tax in the nation.
How Can Moving Help Me Repay My Student Debt?
- One-time payment: Freeing up extra income to move towards repaying your debt can benefit you in several ways. You can place your freed-up income into a one-time payment toward your loans, which will help save you on money on interest rates, and lower the amount of time needed to pay your debt.
- Extra monthly payments: Divide the amount of money you want to give toward repaying your debt into 12 monthly payments, and add this on top of your pre-existing monthly payments. You will end up saving more money in interest in the long run, and will allow you to repay your debt sooner.
Moving states could be the change you need to start repaying your debt, and the sooner you are able to make extra payments, the more money you will save on interest and fees in the long run. The average student graduates with thousands of dollars of student loan debt, and contacting a debt settlement attorney could be the best option for you to find the most efficient way to settle your debt.
New Jersey bankruptcy attorneys at Garland & Mason, L.L.C. are dedicated to answering your questions about student debt.