Want to Get Out of Debt? Focus on This Number First

Most personal finance advice tells you to cut your spending if you want to get out of debt faster. But what if there’s another way to get debt relief? The truth is, your monthly spending is only one part of your budget. Sometimes an even more important number is the one on the other side of the ledger: your income. The money you earn at your job and from other sources plays a big part when your goal is getting out of debt faster. 

Sure, cutting expenses is worth doing. But if you’re serious about getting out of debt faster, you might want to focus on increasing your income. 

Let’s look at how to boost your income—even if it’s temporary—to help get out of debt. 

1. Ask for a Pay Raise at Your Job 

Many people struggle asking for a pay raise. You might worry that your boss will say no. Some people don’t feel confident about their job security and fear that asking for a raise could hurt their standing at work. 

But asking for a pay raise often gets good results. Most people (82%) who ask for a pay raise…get a raise! According to a recent survey, men are more likely than women to ask for a raise: Nearly half of men asked for a pay increase in the past year, compared to about a third of women. 

You always have the power to negotiate your pay, even when you have a full-time job. Your employer needs you more than you might expect—and they’ll often pay you more money if you ask for it.  

2. Get a Part-Time Job 

How about turning your after-work hours into extra cash? If you’ve got the time and energy to make it happen, you might want to get a part-time job to help pay off debt faster. Working an extra 10 hours a week, even for a lower wage than your usual job, could put a big dent in your debt. 

For example, if you could earn $10 an hour working part-time, for 10 hours each week, suddenly you’ve got an extra $100 per week. That’s about $400 per month or $4,800 a year. 

3. Start a Side Hustle 

A part-time job isn’t always the right fit for your schedule if you want to get out of debt fast. You can turn your spare time into extra cash. In most cities, there are easy opportunities to start side hustles like rideshare driving, takeout food or grocery delivery, and dog-walking. And online side hustles are flexible, so you don’t have to worry about showing up for fixed hours at a part-time job. 

You might find that your side hustle is fun and fulfilling. It feels good to make extra money. It can help you watch your bank account balance go up and feel more in control of your budget. Earning just a small amount of extra income from a side hustle can help motivate you to build a brighter financial future.

Working Harder Doesn’t Have to Last Forever 

Many people aren’t eager to sign up for extra hours of work. If you’re already tired from your full-time job, or if you work irregular shifts at your regular job, you might not feel fired up to go work harder in your spare time. If you’re struggling to pay bills and falling deeper into debt, it might be time to dig deep and take on a bit extra—just for a short while. Working extra hours can be  temporary.

Cutting expenses is only part of the puzzle to get out of debt. Many people will be better off if they can figure out how to raise their income, too. And whether you’re paying off your own debts without outside help or looking for debt relief solutions like a debt settlement program, earning extra money will brighten your situation. Saving up extra money from a part-time job or side hustle can also help you build up your cash savings to make successful debt settlement offers.