Four Best Ways to Get Rid of Those Student Loans Quickly

At some point, you’ve probably heard someone say, “Do what makes you happy.”

I’m all for that idea. I want everyone to chase their dreams, spend time with people they love, and challenge themselves to improve and grow.

As I’ve talked with people all across the country, though, I’ve learned there’s a common obstacle that’s keeping them from doing those things: student loans. That’s right. National student loan debt reached an all-time high of $1.36 trillion in 2017. And chances are — your loans make up a portion of that number.

Instead of working to build a happier, healthier future, you’re stuck sending money to the past. It’s tough, right? Because of student loans, you may work a job you hate, feel guilty about investing time or money in your hobbies, or be so strapped for cash you couldn’t even imagine helping another person in need.

That’s no way to live your life. But thankfully, it doesn’t have to be the rest of your life!

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Here’s how to pay off your student loans quickly:

1.) Be the boss of your own money. Can I let you in on a little secret? You’re already the boss of your money. It may feel like debt, bills, or even your kids are in control, but that’s just not true. You choose how to manage your finances. That means you can decide right now whether you’ll renew your vows with student loans or finally break up with them for good.

But what does that look like on a day-to-day basis? I’m so glad you asked …

2.) Make (and stick to) a budget. Once you’ve decided you’re in charge of your money, it’s time to make a plan. Yes, friends, the dreaded budget. Sounds restrictive, I know, but here’s the thing: Budgeting actually gives you permission to spend.

Related: Don’t Be Hamstrung by Crippling College Debt

I suggest creating a zero-based budget, which means your income minus your outgo equals zero. Be sure your basic needs are taken care of first, like food, clothing, housing and utilities, and transportation. Then spend some time looking at your leftover money and remaining expenses. With a little practice — and by shifting your priorities around — you may realize you can put more money toward debt than you ever thought possible.

3.) Pay your smallest debt first. Now that you’ve got a budget, how do you tackle your debt? Start by listing all of your non-mortgage debts — student loans, credit cards, and car loans — smallest to largest. If you have multiple student loans, be sure to separate them and note the individual balances instead of lumping them all together.

Next, make the minimum payment on all your debts except for the one with the smallest balance. For that debt, I want you to throw any extra money you can find at it. Studies back me up on this approach. Researchers have found that focusing on the smallest balance is the best strategy for paying off debt. With each debt you pay off, you not only gain momentum, but also confidence that you really can be debt-free!

4.) Find more money. Maybe you’re thinking, “This all sounds great, but where am I supposed to stumble upon all this extra cash?” I always start by pointing folks back to the budget — because when you have a plan in place, it helps you spend less and save more. But if you want to pay off your student loans even quicker, you’ll need an income boost.

You can increase your income by taking on more hours at work or temporarily picking up a second job. Don’t be afraid to get creative. You might start a side business, work as a freelancer or consultant, or sell things on sites like Etsy, Poshmark or eBay.

Imagine how it will feel to put that money toward building a happier, healthier future — complete with an emergency fund, a down payment on a home, retirement savings, and much more.

Do everything you can to pay off your student loans (and any other debts) as quickly as possible. Imagine how it will feel to put that money toward building a happier, healthier future — complete with an emergency fund, a down payment on a home, retirement savings, and so much more.

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And, hey, why not go ahead and dream about the “so much more” things, too? Maybe you’ll have the freedom to try out a new career path, take your family on a big vacation, spend a week abroad with your spouse, go shopping without worry, or give generously whenever and to whomever you see fit!

As a number-one New York Times best-selling author and seasoned communicator, Rachel Cruze helps people learn the proper ways to handle money and stay out of debt. She’s authored three best-selling books, including “Love Your Life, Not Theirs” and “Smart Money Smart Kids,” which she co-wrote with her father, Dave Ramsey. Follow her online at rachelcruze.com, youtube.com/rachelcruze or facebook.com/rachelramseycruze.