For those with full-time jobs, taking on additional work might seem impossible. However, with the rise of easily accessible work that generates quick cash, side hustles are becoming increasingly common. The numbers speak for themselves. Nearly 80 million people who work full-time have a side hustle, and when it comes to debt, 25% use their side hustle to help pay it off (Sunmark Credit Union). 

In this article, we'll show you how to find a side hustle that can help you maintain your work-life balance while enabling you to pay down your debt more quickly.

Even a little makes a big difference

When you're buried in debt, it might seem like adding a side hustle won’t make a significant impact. However, even earning an extra $50 per month from a side hustle can make a huge difference. For example, if you have a $2,000 credit card balance, applying $50 towards it each month could get you out of debt in 3 years instead of over 100 years.

Many people use a popular debt pay-down strategy called the snowball method. Financial coaches recommend the debt snowball for its quick wins and momentum-building effect. It also happens to be easy to implement with a small side hustle. Using this strategy can help you pay off your debt faster. Learn about the snowball method here.

If you want to make your snowball payments from one centralized app, try Budge.

Not all side hustles are created equally for getting out of debt

From starting an Etsy business to delivering food, there are an endless number of options. But, it’s important to be careful when choosing a side hustle so it won’t cause burnout. We recommend you consider these three factors when choosing a side hustle: 

• Easy ramp-up: While starting a business may make more money in the long term, it takes too much time and effort to get moving. Focus on side hustles that can start generating money fast.
• Flexibility: A side hustle should be able to work around your full-time job and fit into your free time.
• Guarantees earnings: A side hustle for someone with a full-time job should only involve time in, and money out. You should be able to earn a predictable amount of money.

Rideshare and food delivery are a great way to make additional cash if you already work full-time

With the factors above considered, here’s why we recommend rideshare and food delivery services:

The flexible schedule allows individuals to work at their convenience, fitting in shifts around other commitments such as a full-time job or family responsibilities. Additionally, the low barrier to entry makes it easier to start earning quickly. Even if you only work during peek hours, this can substantially boost your payoff ability.

While rideshare and food delivery services offer potential pathways out of debt, they come with drawbacks. These jobs require access to a reliable vehicle and the cost of maintaining and fueling a vehicle can eat into earnings, diminishing the financial benefits. Additionally, the hourly rate for these services is highly variable, and heavily influenced by demand fluctuations. During off-peak hours or in less busy areas, drivers may find themselves earning significantly less, leading to inconsistent and unpredictable income.

As you start to make more money with your side hustle, Budge enables you to place one-time payments towards your credit cards all through one app, simplifying your debt repayment process. Try Budge for free here.

See if you can take on an additional project to make more money at your existing job

While this isn’t a side hustle, it is an easy way to work on something you are already familiar with. If you think your company would be up for it, talk to your manager about potential opportunities to take on some extra work. 

While other side hustles involve startup time, you may be able to get extra work at your existing job quickly. Even with rideshare, you need to get your car ready and your background check cleared.

Some drawbacks include this method only working with certain employers, and the potential for burnout at your existing job.

We don't recommend starting these side hustles if you are looking for a quick way to pay your debt

If you’re looking for a quick way to pay off your debt, these common side hustles won’t be as effective:

• Etsy: With Etsy, you have to spend time building your brand along with new items. Starting an online business also creates new unexpected expenses that make funneling money toward debt payments harder.
• Pet sitting: This side hustle is dependent on your reputation and recommendations from previous clients, which take time to build up. It doesn’t guarantee time in/money out.
• Starting a side business: While entrepreneurship can be a lucrative endeavor, earnings aren’t guaranteed, and it could eat up a lot of your time before you start making reliable money.

Conclusion

Finding new ways to make more money while working full-time is challenging, but not impossible. By leveraging a side hustle, you can create a steady stream of extra income to speed up your debt repayment plan. Remember, even small amounts can make a big difference over time. With an endless array of options, you can choose a side hustle that fits your skills, interests, and schedule. 

While ride-share and food delivery services are excellent choices for their flexibility and low entry barriers, be cautious of prioritizing side hustles that need upfront investment or pose high risks.

By choosing a side hustle that has a quick ramp-up time, guarantees earnings, and is flexible, you can pay down your debt without overwhelming your workload.