You can’t get to third-world status if you don’t do a debt repudiation.
Answer is to inflate the dollar until its worthless paper with lots of zeros. Them pay back the loans with funny money. WE can all be Billionaires! Thats what Germany did to pay back WW I and the Allies. Simple. The lowest bill in the New Dollars will be a Thousand( with Harret Tubman on the Bill) then the ten Thousand (With MLK on the Bill) and the Fifty Thousand (with Obama) and the One Million (with Harvey Milk)