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Earn a high-yield savings rate with JG Wentworth Debt Relief
How to Make Extra Money to Pay Off Debt
by
JG Wentworth
•
September 20, 2024
•
6 min
With credit card debt smashing records in the U.S., more and more Americans are scrambling to find ways to manage their finances. Thankfully, there are more ways than ever to generate extra income to help pay off this debt. This article will explore various methods to boost your earnings and provide practical tips for using that money to tackle your debt efficiently.
Assess your current financial situation
First things first, it’s crucial to have a clear understanding of your current financial standing. This involves:
- Listing all your debts: Include credit cards, personal loans, student loans, and any other outstanding balances. Note the creditor, balance, interest rate, and minimum payment for each.
- Creating a budget: Track your income and expenses to identify areas where you can cut back and allocate more money towards debt repayment.
- Calculating your debt-to-income ratio: This will give you an idea of how much of your income is going towards debt payments and help you set realistic goals.
Set clear goals
With a clear picture of your finances, it’s time to set specific, measurable, achievable, relevant, and time-bound (SMART) goals. For example:
- “I will pay off $5,000 of credit card debt within 12 months by earning an extra $500 per month and cutting $100 from my monthly expenses.”
Having well-defined goals will help you stay focused and motivated throughout your debt repayment journey.
Capitalize on your skills
One of the most effective ways to earn extra money is by leveraging your existing skills and expertise. Consider the following options:
- Freelancing: Platforms like Upwork, Fiverr, and Freelancer offer opportunities in various fields such as writing, graphic design, programming, and digital marketing.
- Tutoring: Share your knowledge in subjects you excel at through online platforms like VIPKid, Chegg, or TutorMe.
- Consulting: Offer your professional expertise to businesses or individuals in your field of specialization.
- Online courses: Create and sell courses on platforms like Udemy or Teachable, sharing your skills with a global audience.
Leverage the gig economy
The gig economy offers flexible opportunities to earn extra income. Some popular options include:
- Ride-sharing: Drive for services like Uber or Lyft during your free time.
- Food delivery: Sign up with DoorDash, Grubhub, or Uber Eats to deliver meals in your area.
- Task completion: Platforms like TaskRabbit allow you to offer services such as home repairs, moving assistance, or running errands.
- Pet-sitting or dog-walking: Use apps like Rover or Wag to connect with pet owners in need of your services.
Sell unused items
Turn your clutter into cash by selling items you no longer need:
- Online marketplaces: Use platforms like eBay, Amazon, or Facebook Marketplace to reach a wide audience.
- Specialty sites: For specific items, consider using sites like Poshmark for clothing, Gazelle for electronics, or Bookscouter for textbooks.
- Garage sales or flea markets: Organize a garage sale or rent a booth at a local flea market to sell multiple items at once.
Rent out assets
If you have valuable assets, consider renting them out for extra income:
- Spare room: Use Airbnb or VRBO to rent out a spare room or your entire home when you’re away.
- Parking space: In urban areas, you can rent out your parking space using apps like JustPark or SpotHero.
- Car: Platforms like Turo allow you to rent out your car when you’re not using it.
- Equipment: Rent out tools, cameras, or other equipment through sites like Fat Llama.
Take on a part-time job
While it may require more time commitment, a part-time job can provide a steady stream of extra income:
- Retail or hospitality: Many stores and restaurants offer flexible schedules for part-time workers.
- Virtual assistant: Provide administrative support to businesses or entrepreneurs remotely.
- Customer service representative: Many companies hire remote customer service reps with flexible hours.
- Seasonal work: Take advantage of holiday seasons or local events that create temporary job opportunities.
Monetize your hobbies
Turn your passions into profit:
- Crafting: Sell handmade items on Etsy or at local craft fairs.
- Photography: Sell stock photos on sites like Shutterstock or iStockphoto.
- Blogging or vlogging: Create content around your interests and monetize through advertising, sponsorships, or affiliate marketing.
- Gaming: Stream your gameplay on Twitch or create gaming content on YouTube.
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Maximizing your debt repayment strategy
Once you’ve started earning extra money, it’s crucial to use it effectively to pay off your debt:
- Prioritize high-interest debt: Focus on paying off debts with the highest interest rates first to minimize overall interest payments.
- Use the debt avalanche or snowball method: Choose between paying off the highest interest rate debt first (avalanche) or the smallest balance first (snowball) based on what motivates you more.
- Consider debt consolidation: If you have multiple high-interest debts, consolidating them into a single lower-interest loan might save you money and simplify repayment.
- Negotiate with creditors: Try to negotiate lower interest rates or settlement amounts with your creditors.
- Avoid new debt: While paying off existing debt, avoid taking on new debt to prevent setbacks.
The bottom line
Paying off debt requires dedication and hard work, but with the right strategies and a commitment to earning extra income, you can achieve your financial goals. Remember that the journey to becoming debt-free is a marathon, not a sprint. Stay focused on your goals, be persistent in your efforts to increase your income, and maintain discipline in your spending habits. With time and effort, you’ll not only pay off your debt but also develop valuable skills and habits that will benefit your financial future for years to come.
There’s always JG Wentworth…
Do you have $10,000 or more in unsecured debt? If so, there’s a good chance you’ll qualify for the JG Wentworth Debt Relief Program.* Some of our program perks include:
- One monthly program payment
- We negotiate on your behalf
- Average debt resolution in as little as 48-60 months
- We only get paid when we settle your debt
If you think you qualify for our program, give us a call today so we can go over the best options for your specific financial needs. Why go it alone when you can have a dedicated team on your side?
SOURCES CITED
Dickler, J., “Credit card debt hits record $1.14 trillion, New York Fed research shows.” CNBC. August 6, 2024.
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The information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
* Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 51% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required.
Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors: (1) Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit; (2) May result in your being subject to collections or being sued by creditors or debt collectors; and (3) May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors. Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment.
JG Wentworth does not pay or assume any debts or provide legal, financial, tax advice, or credit repair services. You should consult with independent professionals for such advice or services. Please consult with a bankruptcy attorney for information on bankruptcy.