Need some side hustles to pay off debt fast?
Getting out of debt is the goal for many consumers. But if you’re already financially stretched to the limit with the income that you have now, then you need to make some changes to knock out your debt.
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Use Side Hustles To Pay Off Debt Fast
The best way to pay off debt quickly is to find a side hustle. Working a part time job or becoming an entrepreneur can help you realize your financial goals much faster than if you just try to cut down on expenses alone.
You can work side hustles at home or online. Some types of side hustle are structured so that you can start to earn right away. One of these is DoorDash. This business allows consumers to order food and have it delivered.
If you fill out the application, you become an independent contractor. This means that you’re the boss. You get to set the hours when you’ll work. You’ll be able to deliver in your area and if you go out of town, you can still work and deliver while you’re out of town if the area has DoorDash available.
When the potential order shows up in the queue, you can see the amount of money that delivery will pay. Another option is Instacart. This is a company people can turn to for online grocery buying.
By working a side hustle with them, you become a personal shopper who’ll go get the groceries and then deliver them. If you prefer not to do in person jobs, then there are plenty of options for you to work from home and make extra money that you can put toward your debt.
Side Business Ideas To Pay Off Debt
You can create an Etsy store. All you do is set up an account, choose the shop name and put up the items you’re listing. You can sell things that you make or supplies for those who make things.
For example, you could sell beads or patterns or party supplies. Ebay is another online platform you can use to sell items. You can sell things that you find around your house that you no longer use.
Also, you can look through free sites where people are giving things away and take those to sell. You can also look through clearance bins at retail stores, buy items that you know sell well and market those for a profit on Ebay.
If you have a skill, you can sell it on Fiverr. You can sell graphic design, music compilations, and artwork. You can sell your services such as becoming a virtual assistant and handling project management or customer service.
If you have a degree, you can teach a language online. If you’re good at critiquing and proofreading, you can start an editorial side hustle. Want more ideas? If you’re good at listening and writing, you can start a minute taking side hustle. This is one of the best side hustles to pay off debt because lots of organizations need minute taking services.
There are plenty of ways to earn extra money so that you can get out of debt. Choose something you like and make sure that you start your debt payoff plan with the side hustle earnings.
How Many People Got Out of Debt During the Pandemic
Getting out of debt is something that millions of people can only dream of doing. Yet, many people actually made that happen and even during the pandemic. Though many were struggling with financial challenges, they still managed to make financial decisions that led to freedom from debt because they decided to take control of their spending habits.
One of the factors that helped with debt elimination was that people had more time at home since so many businesses were closed to in person work. Places that people normally frequented were also closed.
This allowed people to save the money they normally would have spent. Because of being at home, many people had more time to look for deals and savings on the things that they normally buy.
Slashing the Grocery Budget and Food Expenses
They could search grocery store sales papers for deals and clip coupons to stretch their grocery budget when they may not have had time prior to the pandemic to do this.
Since many restaurants closed to indoor dining, many people stopped eating out.
Not spending money on food this way helped to add more income to the budget.
Because people were at home, they could choose to create healthier meal plans and planning meals saves money over buying on impulse when it’s time to eat.
Creating a meal plan cut down on buying extras or unnecessary expenses at the grocery store. The expensive coffee habits were disrupted by the pandemic and many people gave up their $6 or more daily coffee drink and instead, used that money toward other things.
Slashing Entertainment & Recreational Expenses
People who spent money on entertainment or hobbies stopped this practice and instead chose to find ways to entertainment themselves that didn’t cost anything. Because the pandemic shuttered gyms, many people paused or canceled their expensive gym memberships and put that money toward extra payments on debt obligations.
With the time they got to spend at home, many people were able to create a budget, maybe for the first time. Also because of having this additional time at home, some were able to start the home business they’d never had time for before.
This brought in additional income that was used to help pay down and then pay off debt. Some people took on part time jobs once they realized they had more time on their hands during the pandemic.
Many people took a look at their financial picture as a result of the pandemic and wanted to be better prepared financially so they cut up their credit cards. They used the money they saved on not going out to eat and not spending on entertainment to pay extra every month on their credit cards.
This enabled them to pay off balances. Others took the time off to go through their homes and sell items they no longer wanted or used. They applied this money to their debt balances and paid them off.
Effective Ways to Trim Your Expenses And Pay Off Your Debt
Being deep in debt and struggling to pay it off can be very stressful.
Millions of people are, and there’s really only 2 ways to reduce debt effectively:
- Earn more with side hustles to pay off debt fast
- Trim your expenses and use the extra to pay off the debt
Trying to make a dent in your outstanding balance can seem like a very formidable endeavour, especially if it’s a large amount. Nevertheless, if you’re consistent and pay off whatever you can, whenever you can – you will diminish and finally eliminate your debt.
Be Proactive – Don’t Leave it to Chance
You MUST be proactive about it. One of the best ways to trim your expenses will be to write down in a notebook whatever you’re spending money on. This may seem like a bit of a hassle, but it will shine a spotlight on your spending habits.
It’s here where you will find a plethora of ways to reduce your spending. Of course, it’ll not be a fun experience.
Sacrificing what you want now for what you want most (zero debt) can be difficult because you’ll be delaying immediate gratification, and that’s always hard.
Nevertheless, once you’re debt-free, not only will you feel a sense of accomplishment and freedom, but you’ll be much happier too. Financial anxiety and stress will no longer have a hold on you.
More importantly, you’ll have much better control over your spending habits and this will serve you well all the days of your life. Millions of people struggle to control their spending. You’ll not be one of them. This reward alone is worth paying the price now.
21 Money Hacks to Help You Save More and Pay Off Debts Faster!
- Call up your creditors and renegotiate your interest rates.
- Eat at home more instead of spending money on food outside.
- Stay home more and spend less.
- Have a budget and stick to it!
- Buy necessities in bulk to enjoy discounts.
- Cancel subscriptions you don’t use (Cable TV, magazines, etc.)
- Pack your lunch for work.
- Do it yourself instead of paying others (E.g. mowing your lawn, house cleaning, etc.)
- Cancel your gym membership and workout at home.
- Use less electricity so that your utility bills are lower.
- Sell off items you don’t need. You can use eBay or do a garage sale.
- Only spend on items you need and not items you want.
- Use bar soap rather than liquid soap which finishes faster.
- Avoid using public transport or the car if you can walk/cycle to your destination.
- Choose generic/store-brand products instead of name-brand items (especially if the difference in quality is negligible).
- Ask for a raise at work (you might get it!)
- Only use air-conditioning or heat if you absolutely need to.
- Take on a second job. The extra income will definitely help you pay off your debt faster.
- Use cold water for your laundry.
- Look at the rates for your home insurance, car loans, etc. Always find a better deal and be willing to move to a new provider so that you enjoy cost savings.
- Use coupons when shopping.
Come Up with Your Own Money Hacks To Pay Off Debt Fast
These tips are just the tip of the iceberg. Pun fully intended.
By now, you’ll realize that there is a myriad of ways you can cut your expenses. You just need to be proactive and look for them. The more you save, the more your debt you can pay off.
If you’re willing to start some side hustles to pay off debt you’ll be able to lower your debt quicker. Maybe, a second job like Uber driving or some other side-income 3-4 days a week will help you earn more to settle that pesky debt. You don’t have to do it forever… just long enough to get out of debt.
Apply these tips and once you get out of debt, make a promise to yourself that you will keep away from bad debt forever.
7 Tips for Creating a Get Out of Debt Plan
Getting out of debt doesn’t happen by accident. You have to be proactive about it and take immediate action.
The reason millions of people get mired in debt and can’t seem to escape its clutches is because they ignored the problem either because they were worried or they thought it wouldn’t matter.
Well, it does matter… and when you don’t pay up, you’ll find out how much it really matters. You can end up losing everything you own if debt is left to escalate out of your control.
The good news is that you can STOP debt in its tracks and remedy the problem, if you have a solid get out of debt plan. Use the 7 tips below.
#1. Make a list of your debts TODAY
Like management consultant, Peter Drucker, once said, “What gets measured, gets managed.”
Do not try and guess the amount or attempt to do mental math when it comes to debt. You want accounting down to the last penny.
Write down the outstanding balances you owe on all your credit cards and loans and whatever else you owe. Also write down the interest rate next to each balance.
For example, if you owe $3,500 on a credit card that charges 14% interest on your outstanding balance, this is what you’d write – $3500 (14%).
Now you’ll know exactly where you stand as far as your total outstanding debt goes.
#2. Make a budget for yourself
The next thing you’ll need to do is write down your disposable income. How much money do you take home after taxes?
This is the most important number. Based on this number, if you covered the bills and your needs, how much money would you have left to pay the bills?
This is where finding side hustles to pay off debt quickly comes in. You might wish to take a second job to earn more just to slash your debt faster. Whatever the case, now you know exactly how much cash you have to manage your debt. The number may be scary, but it’s important.
#3. Do NOT incur more debt
It’s obvious, but needs to be stated – don’t take on more debt.
Don’t make impulse purchases just because you’re unhappy and want to feel better. The happiness won’t last. You’ll only end up feeling worse.
If you truly want to be happy, become debt-free and you’ll feel a weight off your shoulders. When you don’t have new debt coming in, clearing off old debt becomes easier.
#4. Call your creditors
The next step will be to call the different banks and/or credit card issuers and negotiate for lower interest rates or lump sum payments, etc. It all depends on your bank and the situation you’re in.
But if you show that you’re willing to pay off the debts, most financial institutions will try to make things easier for you.
Do note: be very wary about debt consolidation or balance transfers. Attractive rates may come with hidden fees… and the rates may suddenly jump in future.
In many cases, you’ll be better off paying off each outstanding balance on its own.
#5. Eliminate non-essential spending
It may be tough in the beginning, but if you truly want to make a dent in your debt, you’ll need to reduce your expenses.
Eat home more. Cancel unnecessary subscriptions. Shop less. Use coupons. Have 2 ‘no spend’ days a week. And so on.
Do whatever you can to eliminate unnecessary spending, and use the extra you save to pay off your debts.
#6. Choose a debt-repayment method
When it comes to paying off debt, you can either go with the ‘debt snowball’ method or the ‘debt avalanche’ method.
The ‘debt avalanche’ method is better but requires more discipline. You’ll be paying the minimum on all of your cards/loans except the one with the highest interest rate. You’ll pay the maximum amount you can on that debt. Once that debt is paid up, you’ll move on to the next highest interest debt.
With the debt avalanche method, you’ll save time and money (interest) in the long run.
With the ‘debt snowball’ method, you’ll pay off the smallest debt first. You won’t be concerned about the interest rate here. Once that small debt is paid off, you’ll move on to the next smallest one and so on.
This method will make you feel better because you can see your debts being wiped out, but it will take you much longer to pay off all the debt and you’ll end up paying more in the long run.
Either way, choose a method that works for you and apply it diligently to reduce your debt.
#7.Track your spending
Last but not least, write down your expenses daily. This may seem extreme, but it will hold you accountable.
Find ways to save money wherever you can. You can cut yourself some slack once the debts are paid up. For now, tighten your belt and fight the good fight.
With time and persistence, you’ll pay off all your debts and feel a weight off your shoulders. Decide which side hustles you will use to pay off debt quickly, then create a solid plan and work the plan daily. You’ll get there before you know it.