It’s relatively easy to remember to pay your rent and utility bills. If you’re late paying your landlord, they’ll be quick to let you know, and if you don’t pay your internet bill, it’s a good chance your Wi-Fi will stop working. But when it comes to repaying your student loans, these monthly payments can fall to the wayside if your college days are behind you.
However, just because this bill is easy to forget doesn’t mean that failing to pay it is without consequences. Missing a payment or making late payments can hurt your credit history, cause lenders to pester you constantly for payment, and if you took out federal loans, the government can find other ways of getting repaid.
Luckily, the Level Money app makes it easy to remember all your bills, so you don’t accidentally spend money you need to pay back your student debt. From the Home financial feed screen of the app, scroll down to find your last student loan payment — whether you paid by check, credit or debit card, or an auto-deduction from your checking account. Tap on the relevant line item and a new screen will appear with details about this transaction. Click on “type” and make sure this expense is classified as a “Bill.”
Why does this matter? The app will add this payment to other required expenses like rent and your cell phone bill and, as a result, lower your monthly Spendable amount. While this may sounds like a bummer, accurately reflecting this cost will help you plan out your budget for the month and prevent you from spending money that needs to go elsewhere. This keeps your savings intact, your credit in check, and your lenders happy (which means they’ll stop bothering you about your latest payment).
Level Money℠, powered by Capital One®.
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