When you’re struggling with debt, finding extra money to make repayments can feel overwhelming. Taking on a second job is one option many people consider, but is it the right approach for your situation?
In this guide, we explore whether finding additional work makes sense for debt repayment, and suggest some practical ways to earn extra income. We also outline alternative debt management solutions that might better suit your circumstances.
Is it worth getting a second job to pay off debt?
It almost goes without saying that finding a second job can give your debt repayment journey a serious boost. However, if this is something you’re considering, it’s essential to think about all pros and cons first.
On the plus side, that extra money can go straight toward your debt, potentially shaving months or even years off your repayment timeline. Paying down debt faster means you’ll pay less interest over time – and that’s more money staying in your pocket in the long term. It’s also worth thinking about the fact that committing to extra work can help you build better money habits, as well as potentially helping you pick up new useful skills or make connections that could help your overall career down the road.
However, on the other hand, there are definite downsides too. Naturally, the largest con is simply that working too many hours can leave you burnt out and potentially facing health issues. Getting out of debt and back in control of your finances is important, of course. But it’s not as important as your physical and mental wellbeing. It’s also important to remember that you’ll likely have less time for family, friends, and taking care of yourself if you start moonlighting, which can really impact your quality of life. Remember – health is wealth!
There’s also a financial aspect to think about, in the form of additional tax. The fact is, if you take on a second job, that additional income you earn might push you into a higher tax bracket. In certain circumstances, this could see you actually keep less of what you earn than you expected. On top of this, your extra earnings might also affect any benefits you’re currently receiving.
So, before you jump in and take on the responsibility of a second job, work out exactly how much extra you need to make a real dent in your debt. It’s also worth asking whether making some temporary lifestyle changes might be easier to manage than working extra hours for months on end.
How to earn extra money to pay off debt
If you’ve decided to try and boost your income to tackle your debt, you’ve got plenty of options that don’t necessarily mean working a second job. From flexible side hustles to selling your skills or unwanted belongings, there’re many ways to bring in extra cash without completely sacrificing your work-life balance. The key is finding something that fits your schedule, skills, and circumstances. Here are some practical ways to start generating additional income and accelerate your debt repayment journey:
Start a side hustle
Side hustles can give you more flexibility than traditional part-time jobs. You could sign up with Deliveroo, Uber Eats, or Amazon Delivery, for example, and choose delivery hours that fit around your schedule. Got specialist knowledge in a particular subject? Tutoring can pay well and be really satisfying. If you love animals, dog walking or pet sitting lets you earn while spending time with furry friends. Handy with DIY? Offering repair or odd job services in your local area can be a good way to bring in some additional cash. Or if you’re good with kids, babysitting or nannying during evenings or weekends can work well alongside a full-time job.
Sell things online
Turning unwanted items into cash or creating products to sell can be an effective way to generate extra funds. Start by decluttering your home and selling unused items on platforms like eBay, Facebook Marketplace, Depop or Vinted.
If you’re creative, platforms like Etsy allow you to sell handmade goods, while digital products like templates, printables, and greetings cards can be created once and sold repeatedly, providing ongoing income. Some people also generate additional streams of income that help reduce their debt by buying items at discount and reselling them at a profit online too, which could certainly be worth a go if you have a genuine eye for a bargain.
Freelance
Your existing professional skills might be valuable in the freelance marketplace. This means, if your main employer allows it, you could earn some extra cash freelancing in your spare time. For example, if you can write, content creation, copywriting, or proofreading can be done remotely on your own schedule. If you have an artistic background, graphic designers can create logos, social media graphics, or marketing materials for private clients and customers.
Similarly, if you have web development skills, these could be used to allow you to build or maintain websites for small businesses. The possibilities are endless – if you have specialised industry knowledge, offering freelance or consultancy services on a project basis can be a great way to earn a little money on the side of your main job.
Alternative debt management solutions
Finding the balance between earning extra money and maintaining your wellbeing is crucial when tackling debt. While a second job can provide additional income, it’s important to consider what’s sustainable for your situation.
At MoneyPlus, we understand that managing debt can be overwhelming and that working more hours isn’t always the best solution. That’s why we offer debt solutions like Individual Voluntary Arrangements (IVAs) and Debt Management Plans (DMPs). These solutions are designed to help people regain control of their finances without necessarily having to work themselves to exhaustion.
By exploring all your options – whether increasing your income, budgeting better, or using a structured debt solution – you can make positive progress and find the best way to manage your own specific set of financial circumstances.
Remember – If you’re struggling with debt and unsure about the best path forward, MoneyPlus is here to help. Our approach is always to find the solution that best fits your individual circumstances. Get in touch with our expert team or access free debt advice through MoneyHelper to find out more.
