Travel: Would you take a personal loan for these expenses?

By mediafeed.org
september 19, 2021

We Make Six Figures But Student Loans and Daycare Are Keeping Us Broke

Currently, one in eight Americans has student loan debt, and 63.1 million have children under 18 living at home. We're in both camps, and we're broke.Today, my husband and I are making more money than either one of us has ever made—and yet we're barely surviving. Our income should be more than enough to let anyone live a good life (after all, I somehow survived living in New York City in my early 20s barely making $30,000 a year) but we are currently broke due to our student loan debt and rising childcare costs. And sadly, we're not the only ones. Currently, one in 8 Americans have student loan debt and 63.

a man and a woman sitting on a table: Couple getting a loan

Summer may be drawing to a close, but we’ve still got some time before fall and winter peek around — and in the meantime, many of us may be deciding how we want to organize our finances for the latter half of the year. While the big, spendy holidays aren’t quite yet upon us, we may already be thinking about them — and, specifically, how to fund them.

Maybe you’re too busy thinking about the upcoming college semester — whether yours or your child’s — to be thinking too hard about winter break just yet. Or maybe you’re just trying to sneak in one last epic summer vacation. No matter what your life looks like this August, here’s how to tell whether or not a personal loan might be worth considering.

Best credit cards that offer trip delay reimbursement

Editor’s note: This post has been updated with new information. We spend a lot of time discussing the best travel credit cards here at The Points Guy. A lot of coverage is devoted to rewards-earning opportunities, such as the bonuses you can earn from various categories of purchases. But most cards include a number of …We spend a lot of time discussing the best travel credit cards here at The Points Guy. A lot of coverage is devoted to rewards-earning opportunities, such as the bonuses you can earn from various categories of purchases. But most cards include a number of decidedly less-glamorous perks that can nevertheless be quite valuable.

1. Using a personal loan to (re)decorate your dorm room

Heading away to college, whether for the first time or for a new year, is always a big deal — and making your dorm room look like home can be an important part of the experience.

Of course, it’s easy to overspend on cute decor items, even if they’re individually inexpensive. And because personal loans are a form of unsecured debt, they can typically be used on literally anything you want, including the entire Pottery Barn catalog.

Of course, many students also use money from student loans to furnish, decorate and even secure their housing — though using any borrowed money for such expenses can be risky since loans do incur interest. (In the case of federal student loans, failure to pay may result in wage garnishment, not to mention negative impacts on your credit history.)

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College is expensive enough without going into more debt than you need to. In this case, we recommend saving up some cash and hitting local thrift stores rather than taking out a personal loan.

2. Using a personal loan to fund educational expenses

Decorating a dorm room is just the start of footing the college bill. And although you could use personal loans for other educational expenses, it’s worth asking yourself twice whether you should.

Although federal student loans can certainly be tricky to repay in their own right, they do come with some tax incentives that personal loans lack. Specifically, up to $2,500 in student loan interest is tax-deductible so long as you meet certain IRS eligibility requirements. The same can’t be said for personal loans, which may also carry substantially higher interest rates, especially for young college students who don’t yet have long credit histories established. Federal student loans come with other advantages over private loans, potentially including postponement options and income-driven repayment plans.

Best credit cards that offer trip delay reimbursement

Editor’s note: This post has been updated with new information. With continued pandemic-related flight disruptions, along with what’s expected to be a very busy holiday travel season, you’ll want to be prepared to handle any snags. Having the right credit card could be key to ensuring your entire trip doesn’t go off the rails. Related: …With continued pandemic-related flight disruptions, along with what’s expected to be a very busy holiday travel season, you’ll want to be prepared to handle any snags. Having the right credit card could be key to ensuring your entire trip doesn’t go off the rails.

3. Using a personal loan to consolidate existing debt

As the summer winds down, some of us may be looking back on all the fun we had with a smile in our eyes — but a hole in our wallets. From the cost of fuel and airfare to the food and fun you enjoy along the way, it’s easy to deplete your budget and rack up debt on even just one all-out vacation.

Add credit card bills to other forms of debt, like your car payment or what remains of your student loans, and you might end up feeling like you’re playing whack-a-mole each month. Consolidating your debt by taking out a personal loan large enough to pay off your existing bills could help you save money on interest in the long run, not to mention making your financial life easier to keep up with.

4. Using a personal loan to fund a road trip

Maybe you aren’t like the person in the last slide: You actually haven’t spent a bunch of money this summer seeing the world, and you’re looking to squeeze in a trip now that the sunniest season of the year is waning.

August, in particular, can be a great time for Americans to take a road trip into the desert or other places with nice, dark skies. That’s because the famous yearly Perseid meteor showers peak in mid-August — and they’re harder to see in cities, where light pollution competes with the stellar show.

Solved! How Does a Home Equity Loan Work?

Q: We have decided to renovate our home to make it into our dream house rather than move, but it will be a pricey ren ovation. Can we use the equity we’ve developed to cover that cost?A: You can! Having put in the hard work and discipline to build equity in your home is a great feeling, and while getting that much closer to paying off the mortgage is exciting, it also means that you have access to a pool of funds that you can borrow from to finance your renovation at a great rate. You can also use it to finance non-home-related expenses, such as a child’s college education, medical bills, and other large expenses.

Road tripping can be a relatively affordable form of travel, particularly if you’re willing to camp along the way, cook some of your meals and otherwise avoid the major expenses that traditional tourists face. But you can still easily end up spending more than you mean to while you’re traveling.

Although personal loans can be used for travel, travel doesn’t usually offer a financial return on your investment — regardless of how big the spiritual and emotional rewards can be. For that reason, we suggest saving up money ahead of time to hit the road, rather than going into debt for the privilege.

5. Using a personal loan to dial down medical debt

It’s not a pretty statistic, but it’s true: Medical costs have been reported as the No. 1 reason Americans file for bankruptcy, and anyone who’s ever felt their heart sink while looking over a hospital bill knows exactly why.

It’s tempting to turn to personal loans to try to escape medical debt, which can be both massive and instantaneous. In some financial scenarios, this might be a fruitful choice, helping families avoid more drastic measures and major credit score repercussions. However, bear in mind that there is sometimes room for negotiation, which might keep you from needing to go into more debt to pay your bills. Also, you may be able to obtain financial aid or an interest-free payment plan through the provider. When it comes to medical debt, personal loans are an important tool in your arsenal, but they aren’t your only one, so explore your options.

Earth's hottest places will surprise you

The title of hottest place on the planet is, aptly, hotly contested. There have been records set and scrapped, and overturned because readings were deemed to be inaccurate. There are records for the highest temperatures, countdowns of places with the hottest annual averages and lists of the most sizzling cities. But they all have one thing in common – they’re all scorching. Here are some of the destinations that claim to be among the hottest in the world.

1/9 SLIDES © Marcos Mesa Sam Wordley/shutterstock

Are you thinking of taking out a personal loan?

There are many reasons to take out a personal loan like financing a big purchase or even paying off debt, but you’ll want to consider several factors before you do. Here are seven personal loan mistakes to watch out for — and how you can avoid them.
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1. Not shopping around for the best deal

There are a ton of personal loan options out there and no reason to choose the first one you find. Since so many lenders offer the chance to apply for a pre-qualification, which only requires a soft credit pull, you can find out what you might qualify for on several loans without lowering your credit scores.
Therefore, you can go ahead and collect a few pre-qualified offers to see which lender has the best deal for you. As for what the best deal entails, you might want to consider things like the interest rate, the payoff time frame, and the fees. The less you pay in interest and fees, the better — but it’s still important to make sure you can easily afford the monthly payments.
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2. Not calculating the fees

Personal loans can come with a variety of fees. Some fees to be aware of include origination fees, late payment fees and prepayment penalties.
Origination fees are the fees you pay for taking out the loan, and are typically a percentage of the balance. Prepayment penalties are fees some lenders charge for paying off a loan early. Consider all the fees that come with the loans you pre-qualified for when you decide on the best offer for you.

How to choose the right credit card for you

Editor’s note: This is a recurring post, regularly updated with new information. This page includes information about the Discover it Student Cash Back that is not currently available on The Points Guy and may be out of date. Whether you’re hoping to save money on your monthly grocery bill, rack up rewards for (mostly) free …Whether you’re hoping to save money on your monthly grocery bill, rack up rewards for (mostly) free travel, want a card to help earn rewards on business expenses or have some other earnings goal, there is a credit card out there for you.
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3. Taking on a higher interest rate

It’s fairly common for people to take out a personal loan to pay off high-interest credit card debt, but there’s no guarantee that a personal loan will have a lower interest rate than a credit card.
What’s more, you might find that a variable rate loan comes with a lower initial interest rate, but that doesn’t mean you’ll have that lower interest rate forever. Keep the entire range of possible interest rates in mind if you’re considering a variable rate loan compared to a fixed-rate loan.
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4. Not understanding variable rates

Speaking of variable rates, it’s important to understand what they can do to your monthly payment. If the lowest end of the range of possible interest rates create a payment that’s already at the top end of your budget, then you might have real difficulty staying current on your payments if that rate goes up.
Variable rate loans are not a problem in themselves, but it’s important to make sure you’ll be able to afford your monthly payments should your rate increase.
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5. Choosing terms that don’t match your goals

Since there are many reasons someone might want to take on a personal loan, there are many factors to consider in choosing that loan. You might, for example, be excited to see a loan that gives you a lower monthly payment amount when you choose a longer repayment term. That could be great if your goal is to have a low monthly payment. But if your goal is to get out of debt faster, then a longer repayment term can work against you.
Cost is also a factor when considering the repayment time frame. Let’s say you’ve decided to finance something that costs $10,000. You’re already going to pay more than the original amount for whatever you financed ($10,000 plus interest and fees), but selecting a longer repayment term means that you would pay more than you would with a shorter repayment term, if both options have the same interest rate.

The Tough Math of Co-Parenting: What to Know About Taxes, Medical Expenses, and More

Navigating the shared expenses of raising a child when you're no longer romantically involved can be difficult at best. Here's a guide to help you sort through some of the options. Of course, there's no one right answer to any of these questions—because every family's situation is unique. But it can't hurt to have some helpful guidance from experts. With that in mind, here are tips for negotiating the tough math of co-parenting. Taxes When divorces and separations involve children, there are a variety of important tax considerations to review.
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6. Falling for a scam

It’s easier than ever these days to get a personal loan thanks to the prevalence of loans that can be obtained online. However, the convenience also comes with an increased risk of falling for a scam.
You can help protect your credit and your identity by keeping an eye out for red flags such as “guaranteed credit approval.” You can find even more warning signs in this list from the Federal Trade Commission.
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7. Missing a payment or paying late

Finally, once you choose a personal loan, it’s important to stay on top of your payments. Missing a payment or paying late could damage your credit and cost you in fees. What’s more, if you’ve taken on a secured loan, missing payments could mean losing the collateral tied to the loan.
This goes back to the importance of making sure the loan you choose comes with payments you can afford — and not just today. Consider what your financial obligations will be for the entire duration of the loan and select an option that fits comfortably in your budget.
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Take your time before deciding on a personal loan

Personal loans can be useful tools, both for financing purchases and paying off debt. However, if you have a little bit of time before you need the loan, it might not be a bad idea to use that time wisely by working on your savings so you can take out a smaller loan. You can also work on your credit so you can obtain an affordable interest rate. The better prepared you are, the better your experience with personal loans can be.
This article originally appeared on UpturnCredit.com and was syndicated by MediaFeed.org.
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Reason for personal loan by state in July 2021

Key findings:

Western states such as California, Utah and Colorado are less likely to use funds for home improvement.
States close to or along the east coast such as New York, Connecticut and Vermont are least likely to use personal loans for medical expenses.

Alabama

Card Refinancing & Debt Consolidation 34%

Major Purchase 6%

Home Improvement 8%

Vacation & Wedding Expenses 1%

Business Expenses 7%

Home & Auto Financing 10%

Medical Expenses 6%

Moving & Relocation 4%

Other 25%

Alaska

Card Refinancing & Debt Consolidation 36%

Major Purchase 7%

Home Improvement 6%

Vacation & Wedding Expenses 2%

Business Expenses 4%

Home & Auto Financing 9%

Medical Expenses 6%

Moving & Relocation 4%

Other 27%

Arizona

Card Refinancing & Debt Consolidation 40%

Major Purchase 5%

Home Improvement 4%

Vacation & Wedding Expenses 1%

Business Expenses 5%

Home & Auto Financing 8%

Medical Expenses 5%

Moving & Relocation 5%

Other 27%

Arkansas

Card Refinancing & Debt Consolidation 33%

Major Purchase 6%

Home Improvement 7%

Vacation & Wedding Expenses 1%

Business Expenses 7%

Home & Auto Financing 10%

Medical Expenses 4%

Moving & Relocation 5%

Other 28%

California

Card Refinancing & Debt Consolidation 39%

Major Purchase 6%

Home Improvement 4%

Vacation & Wedding Expenses 1%

Business Expenses 6%

Home & Auto Financing 9%

Medical Expenses 5%

Moving & Relocation 5%

Other 26%

Colorado

Card Refinancing & Debt Consolidation 43%

Major Purchase 6%

Home Improvement 4%

Vacation & Wedding Expenses 1%

Business Expenses 4%

Home & Auto Financing 9%

Medical Expenses 5%

Moving & Relocation 5%

Other 23%

Connecticut

Card Refinancing & Debt Consolidation 48%

Major Purchase 4%

Home Improvement 5%

Vacation & Wedding Expenses 1%

Business Expenses 4%

Home & Auto Financing 9%

Medical Expenses 3%

Moving & Relocation 4%

Other 22%

Delaware

Card Refinancing & Debt Consolidation 40%

Major Purchase 5%

Home Improvement 7%

Vacation & Wedding Expenses 1%

Business Expenses 5%

Home & Auto Financing 10%

Medical Expenses 5%

Moving & Relocation 4%

Other 23%

Florida

Card Refinancing & Debt Consolidation 39%

Major Purchase 5%

Home Improvement 6%

Vacation & Wedding Expenses 1%

Business Expenses 6%

Home & Auto Financing 8%

Medical Expenses 5%

Moving & Relocation 5%

Other 25%

Georgia

Card Refinancing & Debt Consolidation 36%

Major Purchase 5%

Home Improvement 5%

Vacation & Wedding Expenses 1%

Business Expenses 9%

Home & Auto Financing 9%

Medical Expenses 5%

Moving & Relocation 5%

Other 25%

Hawaii

Card Refinancing & Debt Consolidation 44%

Major Purchase 5%

Home Improvement 3%

Vacation & Wedding Expenses 3%

Business Expenses 4%

Home & Auto Financing 7%

Medical Expenses 4%

Moving & Relocation 3%

Other 27%

Idaho

Card Refinancing & Debt Consolidation 41%

Major Purchase 7%

Home Improvement 5%

Vacation & Wedding Expenses 2%

Business Expenses 3%

Home & Auto Financing 8%

Medical Expenses 4%

Moving & Relocation 5%

Other 25%

Illinois

Card Refinancing & Debt Consolidation 40%

Major Purchase 5%

Home Improvement 6%

Vacation & Wedding Expenses 2%

Business Expenses 6%

Home & Auto Financing 9%

Medical Expenses 5%

Moving & Relocation 4%

Other 25%

Indiana

Card Refinancing & Debt Consolidation 36%

Major Purchase 6%

Home Improvement 7%

Vacation & Wedding Expenses 1%

Business Expenses 5%

Home & Auto Financing 9%

Medical Expenses 4%

Moving & Relocation 5%

Other 27%

Iowa

Card Refinancing & Debt Consolidation 34%

Major Purchase 6%

Home Improvement 6%

Vacation & Wedding Expenses 2%

Business Expenses 4%

Home & Auto Financing 10%

Medical Expenses 5%

Moving & Relocation 5%

Other 29%

Kansas

Card Refinancing & Debt Consolidation 40%

Major Purchase 6%

Home Improvement 5%

Vacation & Wedding Expenses 1%

Business Expenses 3%

Home & Auto Financing 9%

Medical Expenses 5%

Moving & Relocation 5%

Other 26%

Kentucky

Card Refinancing & Debt Consolidation 35%

Major Purchase 6%

Home Improvement 6%

Vacation & Wedding Expenses 2%

Business Expenses 4%

Home & Auto Financing 11%

Medical Expenses 5%

Moving & Relocation 5%

Other 28%

Louisiana

Card Refinancing & Debt Consolidation 30%

Major Purchase 6%

Home Improvement 7%

Vacation & Wedding Expenses 2%

Business Expenses 8%

Home & Auto Financing 10%

Medical Expenses 5%

Moving & Relocation 5%

Other 27%

Maine

Card Refinancing & Debt Consolidation 41%

Major Purchase 6%

Home Improvement 8%

Vacation & Wedding Expenses 1%

Business Expenses 3%

Home & Auto Financing 11%

Medical Expenses 4%

Moving & Relocation 5%

Other 23%

Maryland

Card Refinancing & Debt Consolidation 40%

Major Purchase 5%

Home Improvement 6%

Vacation & Wedding Expenses 2%

Business Expenses 5%

Home & Auto Financing 8%

Medical Expenses 5%

Moving & Relocation 5%

Other 25%

Massachusetts

Card Refinancing & Debt Consolidation 46%

Major Purchase 5%

Home Improvement 5%

Vacation & Wedding Expenses 2%

Business Expenses 4%

Home & Auto Financing 8%

Medical Expenses 4%

Moving & Relocation 4%

Other 24%

Michigan

Card Refinancing & Debt Consolidation 37%

Major Purchase 6%

Home Improvement 7%

Vacation & Wedding Expenses 1%

Business Expenses 5%

Home & Auto Financing 10%

Medical Expenses 4%

Moving & Relocation 4%

Other 24%

Minnesota

Card Refinancing & Debt Consolidation 43%

Major Purchase 6%

Home Improvement 4%

Vacation & Wedding Expenses 1%

Business Expenses 5%

Home & Auto Financing 8%

Medical Expenses 4%

Moving & Relocation 4%

Other 24%

Mississippi

Card Refinancing & Debt Consolidation 29%

Major Purchase 6%

Home Improvement 7%

Vacation & Wedding Expenses 2%

Business Expenses 9%

Home & Auto Financing 10%

Medical Expenses 5%

Moving & Relocation 4%

Other 28%

Missouri

Card Refinancing & Debt Consolidation 35%

Major Purchase 6%

Home Improvement 6%

Vacation & Wedding Expenses 1%

Business Expenses 5%

Home & Auto Financing 10%

Medical Expenses 6%

Moving & Relocation 4%

Other 27%

Montana

Card Refinancing & Debt Consolidation 38%

Major Purchase 8%

Home Improvement 5%

Vacation & Wedding Expenses 1%

Business Expenses 4%

Home & Auto Financing 10%

Medical Expenses 5%

Moving & Relocation 5%

Other 26%

Nebraska

Card Refinancing & Debt Consolidation 41%

Major Purchase 7%

Home Improvement 5%

Vacation & Wedding Expenses 1%

Business Expenses 3%

Home & Auto Financing 10%

Medical Expenses 6%

Moving & Relocation 4%

Other 24%

Nevada

Card Refinancing & Debt Consolidation 41%

Major Purchase 5%

Home Improvement 4%

Vacation & Wedding Expenses 1%

Business Expenses 7%

Home & Auto Financing 8%

Medical Expenses 5%

Moving & Relocation 5%

Other 25%

New Hampshire

Card Refinancing & Debt Consolidation 47%

Major Purchase 6%

Home Improvement 5%

Vacation & Wedding Expenses 1%

Business Expenses 3%

Home & Auto Financing 8%

Medical Expenses 4%

Moving & Relocation 4%

Other 22%

New Jersey

Card Refinancing & Debt Consolidation 46%

Major Purchase 5%

Home Improvement 6%

Vacation & Wedding Expenses 2%

Business Expenses 4%

Home & Auto Financing 9%

Medical Expenses 4%

Moving & Relocation 4%

Other 21%

New Mexico

Card Refinancing & Debt Consolidation 36%

Major Purchase 6%

Home Improvement 7%

Vacation & Wedding Expenses 2%

Business Expenses 3%

Home & Auto Financing 9%

Medical Expenses 4%

Moving & Relocation 4%

Other 29%

New York

Card Refinancing & Debt Consolidation 41%

Major Purchase 5%

Home Improvement 6%

Vacation & Wedding Expenses 2%

Business Expenses 6%

Home & Auto Financing 8%

Medical Expenses 3%

Moving & Relocation 5%

Other 25%

North Carolina

Card Refinancing & Debt Consolidation 36%

Major Purchase 6%

Home Improvement 6%

Vacation & Wedding Expenses 2%

Business Expenses 6%

Home & Auto Financing 10%

Medical Expenses 5%

Moving & Relocation 5%

Other 26%

North Dakota

Card Refinancing & Debt Consolidation 43%

Major Purchase 7%

Home Improvement 4%

Vacation & Wedding Expenses 1%

Business Expenses 3%

Home & Auto Financing 7%

Medical Expenses 5%

Moving & Relocation 5%

Other 26%

Ohio

Card Refinancing & Debt Consolidation 38%

Major Purchase 6%

Home Improvement 6%

Vacation & Wedding Expenses 1%

Business Expenses 5%

Home & Auto Financing 10%

Medical Expenses 4%

Moving & Relocation 4%

Other 26%

Oklahoma

Card Refinancing & Debt Consolidation 35%

Major Purchase 5%

Home Improvement 6%

Vacation & Wedding Expenses 1%

Business Expenses 4%

Home & Auto Financing 9%

Medical Expenses 5%

Moving & Relocation 5%

Other 29%

Oregon

Card Refinancing & Debt Consolidation 44%

Major Purchase 6%

Home Improvement 4%

Vacation & Wedding Expenses 1%

Business Expenses 4%

Home & Auto Financing 9%

Medical Expenses 4%

Moving & Relocation 5%

Other 23%

Pennsylvania

Card Refinancing & Debt Consolidation 37%

Major Purchase 6%

Home Improvement 7%

Vacation & Wedding Expenses 2%

Business Expenses 5%

Home & Auto Financing 10%

Medical Expenses 3%

Moving & Relocation 4%

Other 25%

Rhode Island

Card Refinancing & Debt Consolidation 48%

Major Purchase 4%

Home Improvement 6%

Vacation & Wedding Expenses 1%

Business Expenses 3%

Home & Auto Financing 7%

Medical Expenses 4%

Moving & Relocation 3%

Other 23%

South Carolina

Card Refinancing & Debt Consolidation 38%

Major Purchase 5%

Home Improvement 7%

Vacation & Wedding Expenses 2%

Business Expenses 6%

Home & Auto Financing 9%

Medical Expenses 5%

Moving & Relocation 4%

Other 24%

South Dakota

Card Refinancing & Debt Consolidation 41%

Major Purchase 6%

Home Improvement 5%

Vacation & Wedding Expenses 2%

Business Expenses 3%

Home & Auto Financing 7%

Medical Expenses 7%

Moving & Relocation 4%

Other 26%

Tennessee

Card Refinancing & Debt Consolidation 36%

Major Purchase 5%

Home Improvement 6%

Vacation & Wedding Expenses 2%

Business Expenses 6%

Home & Auto Financing 9%

Medical Expenses 5%

Moving & Relocation 4%

Other 27%

Texas

Card Refinancing & Debt Consolidation 37%

Major Purchase 6%

Home Improvement 6%

Vacation & Wedding Expenses 2%

Business Expenses 6%

Home & Auto Financing 8%

Medical Expenses 6%

Moving & Relocation 4%

Other 26%

Utah

Card Refinancing & Debt Consolidation 44%

Major Purchase 5%

Home Improvement 4%

Vacation & Wedding Expenses 1%

Business Expenses 4%

Home & Auto Financing 7%

Medical Expenses 6%

Moving & Relocation 4%

Other 24%

Vermont

Card Refinancing & Debt Consolidation 43%

Major Purchase 6%

Home Improvement 5%

Vacation & Wedding Expenses 1%

Business Expenses 2%

Home & Auto Financing 11%

Medical Expenses 2%

Moving & Relocation 5%

Other 25%

Virginia

Card Refinancing & Debt Consolidation 40%

Major Purchase 6%

Home Improvement 5%

Vacation & Wedding Expenses 1%

Business Expenses 5%

Home & Auto Financing 8%

Medical Expenses 5%

Moving & Relocation 4%

Other 26%

Washington

Card Refinancing & Debt Consolidation 42%

Major Purchase 6%

Home Improvement 4%

Vacation & Wedding Expenses 1%

Business Expenses 4%

Home & Auto Financing 8%

Medical Expenses 5%

Moving & Relocation 6%

Other 24%

Washington District of Columbia

Card Refinancing & Debt Consolidation 38%

Major Purchase 5%

Home Improvement 4%

Vacation & Wedding Expenses 2%

Business Expenses 9%

Home & Auto Financing 7%

Medical Expenses 3%

Moving & Relocation 6%

Other 26%

West Virginia

Card Refinancing & Debt Consolidation 35%

Major Purchase 6%

Home Improvement 8%

Vacation & Wedding Expenses 2%

Business Expenses 3%

Home & Auto Financing 12%

Medical Expenses 4%

Moving & Relocation 4%

Other 28%

Wisconsin

Card Refinancing & Debt Consolidation 40%

Major Purchase 6%

Home Improvement 4%

Vacation & Wedding Expenses 2%

Business Expenses 5%

Home & Auto Financing 9%

Medical Expenses 5%

Moving & Relocation 4%

Other 26%

Wyoming

Card Refinancing & Debt Consolidation 44%

Major Purchase 6%

Home Improvement 4%

Vacation & Wedding Expenses 1%

Business Expenses 3%

Home & Auto Financing 10%

Medical Expenses 5%

Moving & Relocation 4%

Other 24%

That article was produced and syndicated by MediaFeed.org.

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It's easy to feel overwhelmed, but ...

With tuition costs higher than ever, some college grads are finding themselves with student loan balances of $100,000 or more. If you’re one of them, you might be feeling completely overwhelmed about tackling this mountain of debt.
But there are ways to pay off this much without sacrificing decades of your life to student loans. If you’re thinking about how to pay off $100k in student loan debt — or more — read on for some solid strategies that will help.
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1. Write down all the details of your loans, and set goals for repayment

Before you can start conquering your debt, you need to know exactly what you’re dealing with. So your first step should be writing down the details of your loans, from your total balance to your interest rates to your loan servicers.
You can use our personal loan calculator to estimate the long-term costs of your debt. By seeing how much you’re spending on interest, you might get motivated to pay off your loans ahead of schedule. If that’s the case, you can also this Student Loan Hero calculator to estimate how much you’d have to pay each month to shave years off your debt or to save a certain amount in interest. (Note: Both MagnifyMoney and Student Loan Hero are owned by LendingTree.)
If you owe $100,000 at a 6.8% rate, for example, you could pay it off in 10 years with monthly payments of $1,151. But if you increase your monthly payment to $1,500, you could get out of debt three years early. If you can afford to double your monthly payment, you could actually cut your repayment term by five years and nine months and save $22,967 in interest.
Of course, throwing extra money each month at your student debt might not be financially possible at this time in your life. If you’re dealing with a balance of $100,000 or more, you might need to put your debt on an income-driven repayment plan until you can increase your payments in the future.
For now, come up with a repayment plan that works for your current budget, while keeping “stretch goals” in mind for the future. If you eventually start earning more, adjust your plan to reflect the change in your financial situation.
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2. Consider the debt snowball or avalanche strategy for debt payoff

The average graduate with student debt has 3.7 loans in their name, according to Experian. So if you’re considering making extra payments, you might not know which loans to pay off first.
When it comes to paying off multiple debts, there are two tried-and-true strategies that are especially popular: the ”debt snowball” and the “debt avalanche”.
With the debt snowball strategy, you target your smallest balances first and then work your way up to your biggest. This approach can be psychologically motivating, since you’ll be able to completely close your individual accounts as quickly as possible.
With the debt avalanche, on the other hand, you would target the student loans with the highest interest rates. By going after high-interest debt first, you’ll save the most money on interest. You might also target variable-rate loans over fixed ones if you see your interest rate is going up.
At the same time, of course, you’ll be keeping up with payments on all your student loans. But the debt snowball and avalanche strategies are useful if you want to make additional payments on one or two loans but can’t afford to pay extra on all of them.
Each of these tactics is effective in different ways, so think about which would work best as you attack your debt.
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3. Find ways to reduce your spending

People paying off $100k in student loans (or more) are usually eager to get out the shadow of debt as fast as they can. Throwing extra payments at your student loans could help you chip away at your balance faster, but first you need to find the money.
If you don’t have one already, create a budget to track your earning and spending. Once you’ve written down your major spending categories, search for areas where you can cut back. Maybe this involves moving to a less expensive apartment or cooking at home instead of eating out; perhaps you have to forgo nights out at the bar in favor of inexpensive potlucks with friends.
Although reducing your spending will only take you so far, chances are there are areas where you could save — or at least resist the temptations of lifestyle inflation.
Even though it might involve living like a college student for a few more years, you’ll likely be glad you made the sacrifice once you finally dig your student loan balance down to zero.
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4. Get creative about boosting your income

When it comes to budgeting for your student loan payments, spending less is only one side of the coin. The other is increasing your income.
If you took on all this debt to pay for medical school, law school, or another post-graduate program, you might be well on your way to a high-paying job. Whatever your background, though, think about what salary you’re aiming for. By having a clear goal in mind, you can narrow down your job search to positions that are financially feasible for your situation. You’ll also have a clear number to bring to the table during salary negotiations.
And if you’re already working, consider switching employers to boost your salary. In fact, “job hopping” could get you a higher salary than sticking with the same company. Instead of waiting for a 4% raise at the end of each year, you could see a big jump in your income all at once by starting somewhere new.
Alternatively, you could look for ways to supplement your income with a side hustle. According to Bankrate, more than 44 million Americans are working some kind of side hustle. (Incidentally, about the same number of Americans have student loans.)
From driving for Uber to renting out a room on Airbnb to freelancing online, the side hustle possibilities are endless. Consider where your skills and interests lie, and get creative about ways to monetize them.
Once you set up another income stream, you could put those earnings right toward paying off your $100k+ in student loans.
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5. Refinance your student loans for lower interest rates

If you’re dealing with a large student loan balance, then you know that keeping up with interest is half the battle. Over 10 years, for example, a $150,000 debt at a 6.8% interest rate accumulates a whopping $57,145 in interest.
But if you could reduce that rate to 3.0%, then the interest cost plummets to $23,809. How can you lower your interest rates? That’s where student loan refinancing comes in.
When you refinance student loans, you essentially give your old loans to a bank and take out a new one in their place. Depending on your credit and income, you could qualify for much lower rates than you have now. Or you can apply with a cosigner if your credit isn’t up to scratch.
And along with potentially snagging a lower interest rate, you might also be able adjust your monthly payments with new repayment terms, typically between five and 20 years. And you don’t have to refinance just once — you can refinance multiple times as your circumstances or goals change.
All that said, refinancing does come with a significant risk: When you refinance federal student loans, you turn them private. As a result, you lose access to federally sponsored programs such as income-driven repayment plans and federal loan forgiveness.
So before trading your government loans for private refinancing, make sure you’ve weighed the pros and cons. If you’re not relying on any federal programs, however, refinancing could be a savvy way to save money on your student debt and perhaps even pay it off faster than you originally planned.
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6. Consider working toward loan forgiveness or repayment assistance

Instead of diligently paying off your student loans each month, what if you could get your entire balance — or at least, a big chunk of it — forgiven?
Federal forgiveness programs such as Public Service Loan Forgiveness and Teacher Loan Forgiveness will discharge all or part of your federal student loans in exchange for service in a given field or for certain employers.
What’s more, some states offer student loan repayment assistance programs (LRAPs) that pay off a chunk of your federal or private student loans after a set period of qualifying work. Some universities also have LRAPs for graduates, especially those who work in public service or non-profit organizations.
Of course, choosing to work in a non-profit for the sake of getting loan forgiveness could limit your long-term earning potential. So before pursuing these programs, think carefully about your professional and financial goals to make sure everything lines up.
Outside of forgiveness programs, you could also seek out an employer that offers a student loan benefit. Much like a 401(k) matching benefit, some employers will match part of your student loan payments every month to help you pay off your debt faster.
When it comes to how to pay off $100,000 in student loans, the more help you can get, the better. Explore your options for student loan forgiveness or repayment assistance to see if any could help you conquer your debt.
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7. Use a windfall to pay down your balance faster

In mid-2018, the Consumer Financial Protection Bureau took a look in its Data Point report at how borrowers repay student loans. It found that borrowers who pay off a student loan ahead of schedule make a final payment that’s 55 times larger than their scheduled payment.
In fact, 94% of borrowers made a final payment that exceeded what was due. When the end is in sight, you might feel motivated to make a lump sum payment to crush your remaining balance once and for all.
Even if you’ve still got a ways to go on your debt, making a lump sum payment can speed up repayment and cut down on the long-term costs of interest. So if you get a cash windfall, such as a bonus from work or a lucky lottery ticket, consider putting that toward your loans.
Just make sure your loan servicer applies the payment correctly, so you don’t end up paying off interest when you meant to cut away at your principal.
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8. Focus on your end goal of a debt-free life

When you’ve got $100,000 or more in student loans, it can feel like there’s a huge weight holding you down. But hopefully you can use your hard-earned degree to build a career you love while earning money to pay down your debt.
Or if you’re drawn to public service or non-profit work, you might qualify for forgiveness of your student loans. Whatever your approach, paying off this amount of debt might require some sacrifices along the way.
But while it can feel disheartening to stay in a cheap apartment or forgo vacations for a few years, remember that your efforts are bringing you closer to a debt-free life. Ultimately, your hard work will be worth it when you see that student loan balance finally disappear.
This article originally appeared on MagnifyMoney.com and was syndicated by MediaFeed.org.

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