How Do I Get Rid of 100000 of Student Loans As Quickly As Possible
How do I get rid of 100000 of student loans as quickly as possible? Getting rid of this much student loan debt is like climbing a mountain, no 2 ways about it. It is hard, it will require sacrifice to get out of this, and like Dave Ramsey says, we have to put you on beans and rice and rice and beans as quickly as possible to pay these down! And while it may look like a never ending mountain, there are a few ways that you can get this $100,000 paid off. $100,000, for the average American, I would say can be paid off so that you are completely debt free, within around 4 years. Read the blog post to learn how in my new debt consolidation category!
Here is an example of how this student loan breakout might look:
$500 in Credit Card Debt
$9,000 Car Loan
$21,000 Student Loan Debt at 9% Interest
$14,000 Student Loan Debt at 11% Interest
$1200 student loan at 1% Interest
$10,300 Student loan at 9% Interest
$14,000 Student Loan at 11.75% Interest
$30,000 Student Loan at 2% Interest
Here’s how I would pay this off.
How Do I Get Rid of $100,000 Worth of Student Loan Debt As Quickly As Possible? Why I Would Snowball This
Regardless of interest rate, with a debt schema like this, I would attack this via the Snowball. Regardless of interest rates, the best way to attack this would really be to consolidate it as much as possible and to knock off the number of things you have with debt on them. Personally, I use a combination of the Debt Snowball and the Interest Rate Method, somewhat blending the combination of the two of them. Here’s how I would pay these off:
Take down the $500 loan
Crush the $1200 Student Loan
Pay down the $9,000 car loan.
It may not look like much, but with just your first $10,700 in payments, you have paid down 3/8 loans, taking down more than one third of the total amount of your loans. You have significantly consolidated and paid down your debts, and you have given yourself a lot of motivation that this CAN absolutely be done!
From here, you have three options, you can snowball your debts, you can pay off the highest interest rate first, or you can use some combination here. What we have left now after snowballing the first group of loans is the below:
$21,000 Student at 9% interest
$14,000 Student loan debt at 11% interest
$10,300 student loan at 9% Interest
$14,000 Loan at 11.75% interest
$30,000 loan at 2% interest
So we still have a ways to go here. You can snowball these debts, but I would probably go with the interest rate method at this point, as it is very close and will save you some interest. What I may also do at this point is look at refinancing these loans, as you might be able to as much as cut your interest rate in half, which would help you get out of debt even faster here. Here’s how I would pay these off with this being the case:
Make the minimums on all of them and then attack them in this order:
$14,000 loan at 11.75% interest
$14,000 at 11% Interest
$10,300 at 9% interest
$21,000 at 9% interest
And then finally, the big, $30,000 loan at 2% interest.
It is absolutely going to be a complete battle here, and as far as a time frame for paying this down, if you can put $2000 on these, at this point you are looking at paying off the first loan in about 7 months, the next loan in another 7, the next loan in about 5 months, then a near 11 month stretch to pay down the next one, and then finally, 12-15 months to pay off the final one, depending on how high you can get your income up.
With regards to this plan, it will likely take you 4 years, and this assumes that you are literally living in a college dorm room eating beans and rice, and nearly making $70,000 per year. If you are 24 years old and just out of school, then this is rough, but if you rough it until you are 28, you are debt free for life, and you can have like $50,000 per year+ until you’re 30. Overall, this is the best way to do it, it is painful, but it is the fastest, and that is why you will win!
Final Thoughts On How to Get Rid of 100000 In Student Loans As Quickly As Possible, My Final Opinion
Paying off student loans is an absolute battle, it is not to be taken lightly, and when the amounts get to $25,000 and above, they require a deep sacrifice in order to pull off paying them down. Stay strong, keep pushing, and don’t give up, and you will win in the end.
Disclaimer: The opinions and documentation contained within this article and on this blog are the sole property of inflationhedging.com and are not to be copyrighted or reproduced in any manner, else legal action within the rights of the United States legal code could be use to obtain recompense. All articles and blog posts are the sole opinions of the writers of the blog, and are not necessarily in line with what exactly will work for you, you should consult a CPA, Tax Professional, or Financial Professional to determine what exact financial needs are in line with your interests. Also, from time to time, certain links on this website will be used to generate affiliate commissions, in order to support the health and growth of our website, health and business.
[…] Previous How To Get On A Payment Plan With the IRS? […]