Student loan debt is hard to avoid. Consider these ways to pay it off quickly

If you’re like many Americans in their 20s and 30s, chances are you might have some debt.

For many individuals, the biggest source of this debt is student loans. Unfortunately, since more and more positions require a college degree, amassing this kind of debt can be tough to avoid.

We’ve put together this handy guide to help you pay off your student loan debt within five years. It may seem impossible, but it’s doable if you are disciplined and have the right mindset.

Don’t let your student loans haunt you forever — take charge and get them off your back.

Step 1: Break it down

Part of the problem is that your debt can seem impossible at first. Chances are you have thousands to repay, which can make overwhelming to try and pay it off sooner. So the best way to start is to break down your total debt into smaller increments to meet your five-year deadline (or whatever your goal might be.)

For example, if you have $30,000 in student loan debt, that would mean you’d have to pay $6,000 per year to have it paid off in 5 years. This still seems like a pretty big number.

However, if you break it down into even smaller increments, it becomes much more realistic. In our example, $6,000 per year means $500 per month, $115.38 per week or $16.48 per day.

Pay attention to those smaller totals as they can seem much more realistic to accomplish than one big total.

Step 2: Look for assistance

It’s easy to talk about paying more money each month but actually coming up with it can be a struggle. For many people, it’s a challenge to have anything left over once bills and other expenses are paid.

So if you’re already stretched thin, now is the time to seek help.

Some states have grants and programs to help students pay off their loans sooner. For example, if you’re a teacher or medical professional, you may be able to get assistance. Even if your major is more niche, it can’t hurt to check to see what options you have.

In addition to state and federal programs, more and more employers are helping workers pay off student loan debt. If you can find a company that aligns with your career goals it might be worth pursuing.

Step 3: Add a side hustle

Fortunately, we’re living in the gig economy, which means that it’s never been easier to add income to your bottom line. Whether it’s driving for Uber, delivering food with Postmates or helping people on TaskRabbit, chances are that there’s an app to help you make money.

Even better, you can start a side business to start earning some real cash. If you’re crafty, sell on sites like Etsy. If you’re handy, create a profile on Thumbtack.

Utilize your skills and your passions to increase your income. Plus, if your business venture is related to your career field, you’re getting real-world experience as you’re hustling.

Step 4: Cut back wherever possible

It’s naive to think that one or two extravagances will derail your loan repayment process. A piece of avocado toast or a Netflix subscription might not be enough to warrant a change. However, these small expenses can add up.

Before cutting things, though, it’s best to come up with a budget and cash flow chart. Yes, this can seem like a lot of work, but it’s worth it to help you understand where your money is going.

All too often, it’s easy to forget what you spent cash on, so tracking your habits can make a huge difference. For example, you may be paying way more on coffee and food than you realize (remember, it takes just $16.48 per day to pay off $30,000 in five years).

Once you have a budget in place, see where you can make cuts. Also, keep in mind that you don’t have to make drastic changes all at once. Yes, renting a room with four other people can cut your rent down, but your quality of life may deteriorate as well. Ultimately, it’s about striking that balance between saving extra cash and maintaining your sanity.

An excellent way to strike that balance is to make deep cuts at first and then reward yourself for various milestones. For example, set a goal of paying off $5,000 in debt over the next six months. Once you reach that goal, you can treat yourself to a night out with friends.

Bonus step: Refinance your loan

If you have good credit, you can talk with a lender about refinancing your student debt. Refinancing means that you can get a lower interest rate and potentially more favorable repayment terms.

Also, since you know you want to pay everything off in five years, you can talk to your lender about setting yourself up for that kind of timeline. It’s much easier to pay more each month when you have to.

Paying off student loans doesn’t have to be overwhelming. It just takes a plan and a little hard work.

Clint Haynes is a Certified Financial Planner professional and member of the Financial Planning Association of Greater Kansas City. He is a Financial Advisor in Kansas City, and the founder and owner of NextGen Wealth.