Is It Worth Getting a Second Job to Pay Off Debt?

If your current income isn’t enough to comfortably cover your regular expenses and pay off your debts, you have a few options. One is to cut back on expenses so you can put more of your current income toward your debt balances. When you don’t want to tighten your budget further—or there’s nothing left to cut—the answer could be getting a second job, even temporarily. Here are some pros and cons to consider before you take on additional work to tackle debt more aggressively.

Pros of Getting a Second Job

• Increase your take-home pay: By starting another job, whether it’s a steady part-time gig or occasional side hustling, you’ll bring in more money and give your budget breathing room.
• Pay off debt faster: Earning extra income can help you pay down debt balances faster, whether you make larger or extra payments. You’ll also pay less in interest fees over the life of the loan by paying down your balances faster.
• Do more of what you love: A second income stream can add wiggle room to your budget for fun, which could give you motivation to stick with your debt repayment plan.
• Explore other interests: A side hustle or additional part-time job presents an opportunity to try something new.
• It could lead to better full-time prospects: Working a second job or a side gig could provide you with additional marketable skills or new professional contacts that could lead you to a better, higher-paying full-time job.

Cons of Getting a Second Job

• It may not be realistic: If your schedule is already packed with work, family, and other obligations, it’s possible you don’t have enough time to realistically take on another job.
• It can add to your stress: Financial issues and debt are already stressful. Working a second job can take an emotional and mental toll, leaving you with less room in your calendar to get quality time with loved ones, relaxation, and self-care.
• It could endanger your day job: Some employers have restrictions on “moonlighting,” especially if it could be viewed as competitive.
• It takes discipline: For that extra money to actually go toward your debt, you must be on top of your finances and follow through.
• It could have a negative tax impact: Adding a second job, or even a side hustle, could push you into a new tax bracket or require you to pay self-employment taxes.

5 Ways to Earn Extra Income to Pay Off Debt

If the pros outweigh the cons, it’s time to figure out how you’ll bring home the (extra) bacon. Here are some popular options for debt payoff side-hustles.

• Get a regular part-time job: If you need consistent extra income, look for a traditional part-time job in your free time.
• Use gig economy apps for work: If you need flexibility, explore the vast array of apps providing short-term gigs on your own schedule and in amounts you want.
• Work for your community: Brainstorm useful skills you could get paid to do in your local community without needing professional experience.
• Sell things online: Make a quick buck by selling items online that you no longer need.
• Try freelancing: Put professional skills and talents to work as a freelancer, either for one-off projects or hourly work.

Additional Strategies for Paying Off Debt

Besides earning additional money, there are other ways you can make a dent in your debt, from reducing expenses to strategizing how you pay off debts.

• Tighter budget: Making more money isn’t the only way to hasten debt repayment; you can also free some up by cutting expenses.
• Debt snowball method: This is a debt payoff strategy that prioritizes debts with the lowest balances first.
• Debt avalanche: Another debt payoff strategy, this tactic prioritizes the balance with the highest interest rate.
• Debt consolidation: If you have multiple debts and remembering to pay them all is a challenge, or you have high-interest debt, consider a debt consolidation loan.

Your Credit Might Thank You

Earning extra income doesn’t just speed up the progress of debt repayment. It can give you a financial cushion to help ensure you’re able to make all of your bill payments on time. This matters because the most important factor in your credit score is your payment history, so if these strategies above make it easier to pay your bills consistently, your credit could benefit.

You might also see credit improvements as you lower debt. Sign up for free credit monitoring with Experian to keep an eye on how your debt repayment journey impacts your credit.