How to Pay Off Debt by Making More Money

One of the best ways to get out of credit card debt is to earn extra money that can be applied to the debt.

It will require some effort, but if you put away the excuses, the digital revolution makes it easier to find and create revenue streams. You can earn money doing just about anything these days, thanks to the apps you see on your computer or phone.

Be realistic about this. You’re just out to earn some extra cash to help pay the bills and manage your debt. You won’t get rich, but you may earn an extra $50 or $100 or $200 a week that can help eliminate your debt.

We’ve narrowed the options to four categories.

1. Odd Jobs

When we were kids, some of us did odd jobs to make some money. Shoveling snow, cutting lawns … heck, setting up a lemonade stand.

The same principle applies to grown-ups. There are ways out there to make extra money, and not all of them are quirky.

The key is finding the approach that works for you. Like we said, it’s not about gaining wealth, it’s about making a little extra to pay down the debt.

TaskRabbit/ Thumbtack

Are you a handyman or handywoman? TaskRabbit and Thumbtack will connect you with people who have odd jobs that need tackling. And it’s not just work around the house. Customers routinely hire people for a variety of tasks, from bartending to making phone calls to picking up dry cleaning.

And if you’re a woman, consider the fact that many women would prefer to hire a woman for work inside the home.

Baby Sitting/Pet Sitting /House Sitting

People have been making money babysitting for generations. Now, sites like Sitter.com, Care.com, and SitterCity make it easier to find clients.

If you love dogs or cats and enjoy walking them or taking care of them, there are pet-sitting apps like Rover.

If you’re comfortable staying in someone’s home, house-sitting apps like Mindahome.com, HouseCarers.com and MindMyHouse are there to help. If you love pets and can take care of them, all the better.

Driving or Ride Shares

Driving a taxi has been a money maker since the invention of the car. Services like Uber and Lyft are industry leaders. Driving for them could earn you $50,000 a year, if you average 60 fares a week. You have to pay for the gas and upkeep on your car, as well as meet the standards each app requires for the vehicle. If you do, expect to earn between $15 and $22 per hour before expenses, plus tips. That pay rate could go up depending on where you live and how often you drive.

Food and Grocery Delivery

You don’t need to go to the store and shop for food. Apps like Instacart, Shipt and Uber Eats will let someone else do the work for you. If you’re the one doing the work, you’ll be paid.

Here’s how it works: A customer chooses what he or she wants from a grocery store or restaurant. You go and get the items and deliver them to the home. A delivery person for any one of the apps generally can make between $300 and $800 per week.

The beauty of driving and food delivery apps is that you work when you want, and for as long as you want. The discipline is in ensuring you are making enough to help pay down debt.

Sell Your Belongings

A wise person once said holding a garage sale is like finding money. You sell what you no longer want and realize that one person’s junk is another’s treasure.

eBay turned this into an online auction years ago, but apps like ThredUp, Poshmark and VarageSale give you more options. If you’d rather sell online, Facebook Marketplace, NextDoor, OfferUp and Mercari will take care of that for you.

If you have old books to sell, BookScouter will search online buy-back sites for you. Pango will sell your used books and allow you to keep a portion of the proceeds. ThriftBooks will also buy your used books.

You can even sell your hair at BuyandSellHair.com.

Sell Art

The artistically inclined can sell their work at sites like Etsy, CafePress, Red Bubble and Society6. Etsy lets independent people set up their own shop to sell their creations. Tedooo is another app that lets creators sell their wares to people using their phone or tablet.

Offer Tutoring Services

If you’re interested in helping others, tutoring has been streamlined by online tutoring companies like Tutor Me, StudyPool and Tutor.com, which are always looking for qualified teachers. Or maybe you’re a good student, the type that always shows up to class and takes meticulous notes. You can make money off not-so-meticulous students by uploading your notes to sites like Stuvia or Notesale.

Make Your Skills a Side Hustle

Everyone has areas of expertise. Perhaps you could take advantage of yours by starting a small business that offers marketing services, design services, or administrative support. It may seem like the business owner can handle that, but most people who start a business understand their work and not the ancillary work that supports it. If you are skilled in marketing or accounting, you might be able to turn that into a side job that helps small business owners.

2. Investing

It’s never been easier to invest money. Several apps are now available that allow you to buy stocks, bonds, or mutual funds with a few easy clicks on your phone or tablet.

The new apps provide several advantages. Ease of use is a big one, and some apps have low or no-account minimums, making investments available to all. You can also trade at any point in the day with your phone.

Some of the investment apps available include Robinhood, SoFI and Wealthfront. An app like Acorns rounds up purchases to an even dollar amount. Example: A $6.22 purchase costs you $7, and the “roundup” total of 78 cents goes in an investment account that grows with each purchase and roundup. Over time, this could provide a chunk of money to apply to debt.

Stash curates investments from professional fund managers and lets you choose where to put your money. Fundrise will invest your money in its Real Estate Investment Trust.

Most of these apps have monthly fees, similar to banks.

Part of the allure is the ease of investing, but that’s also part of the danger. No investment should be made callously and without proper knowledge. Investments are great when they increase in value, but they can also lose value. So only take risks you are comfortable taking.

Data collection

Much of the burgeoning digital economy is based on knowing what customers like. You can now make money simply by taking surveys or sharing data on various platforms and websites.

The data market is estimated to generate $270 billion by 2026. File it under the ‘if you can’t beat them, join them’ category, and take advantage of any earnings that will help eliminate debt.

Complete Surveys

Much of the burgeoning digital economy is based on knowing what customers like. You can now make money simply by taking surveys. Sites like Branded Surveys, MyPoints, InBoxDollars, PointClub and Swagbucks will pay for your opinion on specific items.

Scan in Receipts

If you like something enough to buy it, you can get paid for simply scanning the receipt. Just download apps like Ibotta, Receipt Hog, Dosh and Rakuten and start scanning. One person who uses one of the apps estimates it takes three minutes per week to scan receipts. Every little bit helps.

Share Your Location and Shop

You don’t even have to buy anything to get a few bucks. Shopkick will send you gift cards just for walking into certain retailers like Walmart and Target. Mobee will ask you to check for certain brands, their price, and will pay cash for each visit. SmartSpotter asks for your help with certain brands and sends the collected information to the brands about where items are displayed and the cost.

Become a Secret Shopper

A secret shopper earns money by anonymously assessing the quality of customer service, prices, purchases, and the overall shopping experience. You’d pose as a regular customer and provide requested evaluations. Secret Shopper will pay you to rate breweries; yes, you can get money for drinking beer. Field Agent and Gigwalk may ask you to do some mystery shopping on their behalf. Among the other Secret Shopper apps are iSecretShop, Mobee and ShopKick.

Become a Mock Juror

Apps like Online Verdict and eJury.com help lawyers prepare cases. These sites ask you to review evidence and offer your opinion, which helps attorneys involved in the case. OnlineVerdict.com matches lawyers with mock jurors and pays per case. Other popular mock juror apps and sites include JuryTest.net and Resolution Research.

4. Rent Your Stuff

Cars, rooms, houses, clothes, you name it … these days you can make money renting just about anything, which can provide help paying off debt.

If you’re not using your car, a site like Turo lets you rent it to pre-screened customers. RVshare.com does the same for RVs.

You can also get paid to wrap your car in advertising by using Carvertise. Pay stars at $100 per month, with average pay between $100 and $400 per month. If you rent that car, motorists won’t even be staring at you as the vehicle gets around town.

Other rental options are out there.

• BabyQuip.com lets you rent baby gear, including cribs, to those on vacation.
• RentySport and Awayco allow you to rent sports equipment, including bikes; this will come in handy if you live in an area where skiing or surfboarding is popular.
• Yoodilize allows people to rent out any number of items, from an electric scooter to paddle boards to a wedding dress to virtual reality headsets.

Plan Your Debt Payoff

Earning extra money can help provide a little more to pay off debt, but other options exist that could be used along with the extra income to reduce debt.

Among them:

• Creating a budget and following it to ensure you don’t spend more than you earn.
• Making more than the minimum payment on credit cards.
• Debt consolidation, which involves paying off multiple debts with one payment method. You then make one payment to one place, hopefully at a significantly lower interest rate.
• Debt stacking, which involves paying off one credit card or other debt at a time while making minimum payments on others. As each balance is eliminated, the extra money goes to the next balance, which speeds up repayment.
• Debt avalanche means paying the debt with the highest interest rate first, while making minimum payments on other debt, then continuing down the list as each obligation is met.
• Debt snowball involves paying the debt with the lowest interest and balance (while making minimum payments on other debt) and working your way to the largest and highest interest rate debt.

Combining any one of these approaches with bringing in extra income can make a difference in your financial well-being.

Calling a certified credit counselor at a nonprofit agency is a good place to help get started. An initial session is typically free, and the credit counselor will assess your financial situation and offer advice on the best option for you.