Is a part-time job the answer to your debt problems?

You’ve set a budget and are serious about paying down your debt. However, despite your best efforts, you are you still living paycheque to paycheque, scrambling to meet expenses and stuck in debt problems? Maybe it’s time to rethink your household budgeting.debt problems

“If you’ve tried your very best to slash expenses, increasing your income can increase your cash flow, which will help you attack your debt problem more aggressively,” says Jeff Schwartz executive director, Consolidated Credit Counseling Services of Canada.

“Quitting your full-time job to get a higher-paying one may not be feasible. Taking on a part-time job that fits your schedule and is supportive to your lifestyle can offer a new strategy in paying down your debt,” says Schwartz.

Not all part-time jobs are equal though. There are some points to consider before taking part-time work.

Come out ahead

The whole idea of a part-time job is that it is meant to boost your income, not cost you money or threaten your steady employment. If you have a job in mind, but is going to cost you in childcare, commuting or other expenses, you’ve got to consider how much extra money you’ll really have to pay down debt. A job that doesn’t cost you any extra money at all is ideal.

Also be very sure that your part-time work won’t conflict with your day job. You’re not going to come out ahead if you lose your main source of income.

Job opportunities

You can consider a traditional part-time job in retail, hospitality, customer service or other sectors that lend themselves to part-time work and hours.

However, if you have a marketable skill or hobby, you might have some money-making opportunities at your disposal. Think about anything from photography, to personal training, to dog walking, to housecleaning, to freelance writing, to music, to consulting there is often a need that you are able to fill, creating your own job opportunities. Entrepreneurship can be another opportunity to generate income, and you can largely control your schedule to fit around your day job and other commitments.

Think outside the income box

Since you are taking a creative approach to your household budget, consider other perks that might come with your part-time employment that can either reduce spending or ultimately increase the mileage that your income has.

For instance, some companies offer benefits to their part-time employees. Could that help defray costs? Does the employer you are targeting offer discounts on items that you regularly buy or that you need? There’s a cost cutting opportunity there too.

Have a plan

Before you even have that extra stream of income coming in, draw up a plan as to how you are going to use it. It’s a good idea to earmark income from both jobs to cover specific expenses. Consider having your “day job” income cover your living expenses, like mortgage/rent, groceries, hydro, etc. and direct the additional income towards debts.

Be careful

There are a lot of “get rich quick” schemes out there, which can be appealing if you are trying to earn some fast money. Be aware though that a lot of these are scams, which could result in you losing money or having your identity stolen.  Never take a job that requires you to pay money to secure employment. If it seems too good to be true, it probably is.

Is living paycheque to paycheque causing you stress? Have you considered restructuring your debt as a first step to pay your debt down? We can help you get started. Call us today at or visit our free online debt analysis.

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