How to Pay Off Debt When You Can Only Work Part-Time

Carrying debt can be stressful. Not only does a portion of your paycheck have to go toward that debt, but just the idea of having those payments hanging over your head can be stressful.

You may be eager to pay off your debt and get to a happier place financially. But paying off debt can be tricky when you only work part-time, since you may be looking at a smaller paycheck.

You may be limited to part-time wages because you’re still looking for a full-time job, or because your employer cut your hours. Or it may be that you’re in school or have young children and therefore only have so many hours in the week to work. 

You can pay off debt even if you’re not working full-time. You just need the right strategy. Here’s how you can do it.

1. Get on a Tight Budget

When you’re limited to a part-time wage, every dollar you earn counts. And if you’re committed to paying off debt while covering your regular expenses, it’s important to understand where every one of your dollars is spent. That’s where budgeting comes in.

You might think of budgeting as a boring, time-consuming process. But setting up a budget can be pretty simple. You don’t even need any fancy tools—a spreadsheet or notebook is enough. 

Just list your expenses along with what they cost, then compare them to your take-home pay. That should give you a sense of how much money you can realistically free up every month for paying off debt.

There are also budgeting apps that can track your spending. These apps typically sync up to your bank and credit card accounts so all your spending is accounted for.

2. Trim Expenses Where Possible

It takes money to pay off debt—there’s no arguing that. And you may not have a lot of extra money coming your way if you work part-time. Reducing some of your expenses temporarily could help you get rid of your debt. Once you do, you can go back to spending more. 

Take a look at your budget and see where there’s room to cut back. You may need to get creative, or even be open to a different living arrangement. For example, if you spend most of your pay on expenses now and you can’t find cheaper rent, getting a roommate may be something to consider. If your car payments eat up a huge chunk of your salary but there’s public transportation nearby, you may want to consider selling your car and taking the bus to work, even if it makes your commute less convenient.

To be clear, these are not necessarily changes you need to commit to long-term. Spending less for even a year might have a huge impact. 

Also, in time, you may end up working more hours. That, too, could give you more leeway to increase your spending.

3. See If You Can Boost Your Income with a Side Hustle or Two

If you’re working part-time because you have limited hours during the week, then picking up a side gig for an income boost may not be feasible. But if you’re open to and available for more working hours and you’re struggling to find them, you may be better off joining the gig economy. 

Unlike a job at an office, restaurant, or retail store, places where a hiring manager has to make you an offer, there are side hustles you can snag on your own as long as you’re willing to put in the time. Examples include driving for a ride-hailing company and offering pet-sitting services. 

If you mostly need your part-time paycheck to cover your living expenses, your side hustle income could be your ticket to paying off debt. And if your side hustle proves lucrative and is more flexible than your part-time job, you could even consider ditching your part-time role and putting in more hours at that gig. 

Debt Relief for Those With a Financial Hardship

It’s not easy to pay off debt when you don’t work a full-time schedule. If you don’t expect your situation to change soon and you feel like your debt is insurmountable, it could pay to explore your options for debt relief. You may be a candidate for debt settlement or consolidation, depending on your situation. 

No matter which route you take, if you stick to a budget, limit your spending for a period of time, and boost your income with a side gig or two, you may find that you’re debt-free sooner than expected.