How To Pay Off $500,000 In Student Loan Debt, My Dave Ramsey Advice
For many Americans, student loan debt is a harsh reality. According to Forbes, the average student loan debt is $37,172, and the total amount of student loan debt in the US is $1.56 trillion. For those who are struggling to make their student loan payments, the thought of paying off $500,000 in debt can seem impossible. However, there are some strategies that can help make the process more manageable.
One option is to refinance your student loans. This involves taking out a new loan with a lower interest rate and using the money to pay off your existing loans. This can help you save money on interest and make it easier to meet your monthly payments. Another strategy is to create a budget and stick to. For many Americans, student loan debt is a major financial burden. If you’re struggling to pay off $500,000 in student loans, you’re not alone. However, there are steps you can take to get your debt under control.
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The Statistics On Student Loan Debt
If you’re among the nearly 45 million Americans carrying student loan debt, you’re not alone. In fact, the average graduate has nearly $40,000 in loans to pay off. But if you’re looking at a much larger debt load, like $500,000, you may be feeling overwhelmed about how to get started.
Luckily, there are a few tried-and-true methods for chipping away at your debt, no matter how big the balance is. One popular method is the “debt snowball” approach advocated by financial guru Dave Ramsey. With this method, you focus on paying off your smallest debt first while making minimum payments on your other loans. Once the smallest debt is paid off, you move on to
For many Americans, student loan debt is a daunting reality. According to CNBC, the average graduate in the Class of 2018 has nearly $29,000 in student loans. For those who have racked up a significant amount of debt, the thought of paying it off can be overwhelming.
Fortunately, there are some tried and true methods for paying off student loan debt. One popular method is the Dave Ramsey debt snowball method. This method involves attacking your smallest debts first while making minimum payments on your other loans. Once your smallest debt is paid off, you move on to the next smallest debt and so on. The goal is to gain momentum as you pay off each debt, making it easier to stay motivated and focus on your long-term.
How I Would Pay Off $500,000 In Student Loan Debt
Personally, I would probably use some combination of working 2 to 3 jobs, and using both the refinance and the debt snowball method together to pay down $500,000 in debt. The best way to I would pay this off is as follows. Consider the following pile of debt:
$100,000 loan at 10% interest
$10,000 loan at 5% interest
$9,000 loan at 20% interest
$25,000 loan at 0% interest
$95,000 loan at 14.5% interest
$90,000 loan at 10% interest
$200,000 loan at 9% interest
Here’s how I would attack this tomorrow. First, use what is likely my job making $125,000 per year (you’d need to be a doctor for this type of debt) and scale it up. I would built websites, I would drive for doordash, and I would take a weekend job, this should bump my income up to somewhere around $175,000 per year. I would take out these loans first:
This takes you down to $485,000 in debt across 4 large loans. Refinance the heck out of these, with this much debt you can probably get to like a 4% interest rate. Live like a college kid for awhile and you can save $100,000 per year of this income. 5 years and you are DEBT FREE.
Final Thoughts On How To Pay Down $500,000 In Student Loan Debt
Of course the above is much easier said than done, but the strategy is still the same. It is actually beatable if you are persistent enough and if you decide to live with roommates like a college student long enough to take these out. It is a sacrifice but it is much better than living your whole life in debt. Read on or subscribe to our blog for additional details and information.
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