Debt can feel like a burden on your shoulders weighing you down through every step of life. Every time that you finance another new purchase with money that you don’t already have, you’re adding weight to that lifelong burden.
Make it a resolution that this is the year you remove that burden from your weary shoulders.
In a single year you can pay down your debt no matter if it’s $3,000 or $30,000. The most effective way to do this to create a new income stream and dedicate all of its earnings towards paying down your debt.
You will need to temporarily add quite a few hours to your workweek, but one year of longer hours can lead to a lifetime of debt freedom and more money in your pocket for the long term. Imagine if those debt payments were funding your investment accounts instead of going to the credit card company.
Getting a Part-Time Job
If you can easily obtain a moderate to well-paying part time job, get one! A 20-hour per week part time gig paying just $12 per hour could add around $1,000 to your bottom line each month. Even after taxes you’ll have a healthy chunk of change to put toward paying down debt.
Over the course of a year, that extra devotion to hard work will do wonders to paying down your debt. If your spouse is able and willing to get a part time job with the same pay, you’ll could pay debt in the following amounts.
Total Debt Paid Off With Two Additional Part Time Incomes:
Month Debt Paid Off
1 $1,890
3 $5,680
6 $11,340
9 $17,010
12 $22,680
How drastically would your life change after paying off over $20,000 worth of debt? Once you get to a $0 balance, cut up the credit cards so you won’t head right back to where you started. Then consider keeping the part-time job for a while longer to build up a healthy savings account for emergencies. This will make you even less likely to have to borrow again in the future.
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Capitalize on a Hobby
Chances are you enjoy a hobby that could be turned into a business. You can flip furniture on Craigslist, sell small knitted items, teach sports, piano, or drawing. If you have a green thumb you can even sell your homegrown vegetables.
If you can use a can of spray paint, you can flip furniture. Buy a beat up item on Craigslist or at a yard sale. Clean it, sand it, then prime and paint in the same step. Apply a protective coating and add new hardware. Put it back on Craigslist for a huge return on your investment.
If you purchased a piece of furniture for $25, spent $25 on supplies, and resold it for $150, that’s a 300% return for just a few hours of work! If you flipped 3 pieces of furniture per week, you could stand to make $1200 per month. Even if you don’t enjoy working on furniture, it’s a very doable side income.
Below are 7 other common hobbies that are simple to capitalize on.
∙ Knitting/sewing
∙ Cooking/baking
∙ Babysitting
∙ Painting
∙ Flipping collectibles
∙ Writing
∙ Party planning
There’s no need to downsize or adjust your lifestyle in order to pay off your debt, although it would certainly help! Getting a part time job or effectively monetizing a hobby could allow you to pay down your debt considerably without any sacrifice except for time. This is the year you can start living debt-free!
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