How to Pay Off $100,000 in Loans

A large debt may seem impossible to pay off when you look at the total debt next to your monthly income. Paying off your $100,000 in loans, however, is within reach when you carefully monitor your expenses and strategically pay the debt each month. Do not let the debt overwhelm you; take a breath, lay the paperwork out in front of you and create a plan for getting out of the red.

Instructions

1

Prioritize your $100,000 in loans on a sheet of paper from the highest interest rate to the lowest. Part of paying off your loans is knowing which loan costs the most per month. For example, if you have a business loan with a 10 percent annual interest rate and an unsecured loan with an 8 percent annual interest rate, the business loan costs more. You will pay more money on your loans in the long run if you do not pay down the most expensive loan first.

2

Write out the minimum payment for each loan on the sheet of paper containing your loan list. To pay off your loans, you will pay the minimum monthly payment on every balance except the loan with the highest interest rate.

3

Create a budget of your monthly income to determine the most you can spend per month on debt reduction. When creating your budget, you may find that you spend needless amounts of money on monthly subscriptions, clothing, eating out or other purchases. Seeing the numbers in front of you will help to tighten your budget for paying down your $100,000.

4

Spend some of your saved money from savings accounts to pay off your $100,000 in loans. The interest your debt accrues is often more than the interest your money earns in a savings account. Paying off some of your loans or part of a loan will eventually offset the loss. Use part of an untouched emergency fund for debt reduction purposes as well.

5

Raise your monthly payments if you have the cash available. You can pay debts off quicker with less interest if you find ways to pay more per month. For example, starting a part-time job or business can bring in extra cash for loan repayment. Renting a room in your house or limiting your driving can free up extra money each month.

6

Consolidate your debts if possible. Your bank may buy all of your loans and create one large loan with a better interest rate if your credit matches its terms. Debt consolidation will make your $100,000 loan repayment easier by creating one bill per month through one lender.