Side Hustles to Help Pay Off Debt Faster

Getting rid of debt early is a manageable goal that can save you a great deal in the long run. One reliable way to pay off old debts is to find a new income stream and use it solely to pay off your debt balances. Fortunately, there are side hustles all around you that can help.

In this guide, you’ll learn why a side hustle is a good tool to earn extra cash and get out of debt faster. You’ll also learn about some of the best skills to turn into short-term income, and how to look out for gig opportunities in your area.

Why a Side Hustle Can Help You Get Out of Debt Faster

If you are dealing with high interest rates, you need to do whatever you can to get out of debt faster. Every month you have to deal with the debt means the loan gets larger. If you can get out of debt quickly, you can pay hundreds or thousands less over the life of your debt.

If you have your basic expenses covered, you can use all of your side income to eliminate your debts. Making extra payments on your debts through a side hustle gives you some freedom and room to grow at your own pace. Even if your side income is small or infrequent, it can still help you pay down your debts.

Start by putting as much new income toward your debt as you can, and when the debt is paid off, you may have a thriving business on your hands. Motivation is only the first step. Next, you’ll need to pick some realistic skills and explore how to monetize them.

Freelancing: Turn Your Skills Into Extra Income

Freelancing can be a relatively easy option in Canada as long as you are legally eligible to work. You can operate as a sole proprietorship, and you’ll only need to worry about registering for a BN number when the annual income from your side business exceeds $30,000.

Of course, there are a lot of other rules that apply, so it can be wise to speak to an employment lawyer or check out resources for new businesses in your province. You’ll need to be licensed to perform some professional services, and other laws may also apply. To get you started, you can pursue the following side hustles without a license in most provinces.

Coding

Companies of all sizes turn to independent coding contractors to generate new code, and increasingly, to review or edit code to help train large language models. You can find coding jobs on any major Canadian freelancing site.

If you want to be competitive for any of these short-term positions, you’ll probably need some experience, completed projects, or certifications to show. If you don’t have any coding background, it’s best to consider other options.

Graphic Design and Rendering

If you have design skills and software, you can often increase your income by booking some short-term design work.

Short-term projects may be posted for show posters, children’s book illustrations, or other one-time situations.

Streaming

Streaming can be a way to build a steady income. You shouldn’t expect to get famous overnight, but you don’t need to count on fame as long as you can deliver quality content to a small base of subscribers.

Start with a niche topic you know well or are enthusiastic about, and build a small library of YouTube videos. As long as you can present yourself well and just keep creating, you can usually build up a small income from ad revenue, viewer tips, and eventually affiliate marketing deals.

Antique or Collectible Sales

Do you have a strong personal interest and background knowledge in a hobby? You may be able to use your experience to be an informed buyer and seller of collectible pieces on sites like ebay or etsy.

Here are a few popular focuses for independent collectors and dealers:

• Collectible cards
• Sports memorabilia
• Vintage gaming systems and electronics
• Jewelry or currency
• Furniture

There are some drawbacks to consider before you invest in this side hustle. You’ll need to be really knowledgeable to spot the deals that will make this work viable.

You may also need to travel or attend scheduled events (such as auctions and estate sales) to find valuable stock.

Food or Grocery Delivery

Delivering food and groceries through apps like Instacart, DoorDash, and Uber Eats can help you make money without losing control of your time.

Full-time Canadian delivery drivers can make between $35-45,000 working full-time, but these apps allow you to choose how often you’ll work, and what days you’ll even be available. You can easily make it a weekends-only position or expand your hours if you find you enjoy the work.

While you can control when you work, the best way to make money from deliveries is to work during peak hours (especially lunch and dinner). You’ll need your own transportation to apply for these jobs, as no apps currently provide vehicles for their drivers.

You may not be interested in building a long-term side hustle, especially if you only have a few thousand dollars to pay off fast. If that’s your situation, gig-economy opportunities can offer a quicker path to the sum you need.

Gig Economy Opportunities

Gig jobs are one-time or short-term work opportunities. They often only last the length of any event or a staff shortage, but that also means you won’t wait long to get paid. These jobs can be an excellent way to wipe out small, high-interest debts.

Finding gig work is the first challenge you’ll face. Several gig-focused platforms are widely used in Canada, including GigjobsCanada and Upwork Canada. Make sure you check the Canadian government’s official source for temporary, part-time, and contract listings.

As long as you are close to a large population center, you should find plenty of gigs covering all of the following skills.

Moving or Hauling

If you have experience moving heavy objects, you can often find short-term work handling moves for individuals and businesses. This can include all types of heavy-lifting tasks, like moving furniture or artwork, loading trucks, or clearing outdoor areas.

Moving companies may advertise short-term gig work to hire extra staff for their largest jobs.

This work is often plentiful in major metropolitan areas, but there are downsides. You may be expected to provide your own work and safety equipment to qualify for most posted gigs. Gloves, dollies, harnesses, and other equipment may require a large early investment.

Cleaning

Cleaning is a great side hustle, and you’ll find short-term gigs posted in most cities. One-time gigs are often posted for party/event cleanup at homes or businesses. Professional cleaning companies may also hire

You’ll be more competitive for these jobs if you already have your own equipment. Job postings for these gigs often include special requests, such as all-natural cleaning materials.

Event Staffing

Large events often need extra staff, and they advertise the openings on sites like gigme.ca,

The roles needed for these events include ushers, waitstaff, bartenders, and stagehands to set up or break down stages and seating.

You may need to comply with local laws to work some of these roles. For example, you need certification to serve alcohol in British Columbia.

These are just a few examples of the gigs you’ll find when you start looking. Depending on the size of your area, you may also find plenty of dog walking, babysitting or pet sitting, online tutoring or test prep, rideshares, and more.

How to Use Side Hustle Income to Pay Off Debt

You should take an organized approach to your debt repayment if you want it to happen faster. Before you begin, you should know as much as possible about your debts themselves, the range of side-hustle income you can pull in every month, and the repayment strategies that are most preferred.

Organize Your Debts

It can be easy to lose track of what you owe, and that is a frequent source of extra fees and fines. Start by creating a one-page reference that will help you remember:

• The number of debts you hold
• The sources of those debts (who you owe them to)
• The most recent balance
• The payment amount
• The dates the payments are due
• The interest rates

Having this information in front of you will help you make decisions about your debt much more confidently. When you have the information you need, it’s time to think about how much money you’ll be able to put toward your plan.

Organize What You Can Pay

This part can be difficult. Side income is rarely constant, so you’ll need to think about it as a range rather than a fixed figure. You need to know how much you’ll be able to devote toward your debts each month so you can create better plans and timelines.

Take the average of the first three months of side-income and use that as your baseline number. Hopefully, your side income will increase from this point on, but you need a starting number to compare against the balances of your loans.

Make a Plan for Repayment

There are two popular strategies to debt repayment that work depending on what motivates you. They are referred to as the avalanche and snowball methods.

Debt Avalanche Method

You apply this strategy by paying off the loans that have the highest interest rate first, even if they aren’t the largest or the most frustrating ones.

By targeting the highest interest rates, you can minimize interest costs and save some money on the total amount that you pay. This is the best method if you want to prioritize your financial goals.

Debt Snowball Method

This strategy is popular with people who find it difficult to self-motivate when paying off debts.

You apply this strategy by targeting the smallest balance first, even if it isn’t costing you the most. The idea is to pay off as many debts as you can, as soon as you can.

By targeting the smallest balance, you can create motivational victories for yourself. This may make it easier for you to commit to a strategy.

If you continue to follow these guidelines, repayment should be much easier to manage.

Have More Questions? Contact My Canada Payday Today

You now know some of the ways you can start paying off your debts using side hustles. It’s possible to generate some side income through freelancing and gig economy work. If you follow the steps laid out, you can use your income to pay off debts faster.

If side-hustle income is unlikely to come through in time, you may need to consider some short-term solutions. A new personal loan can help you pay lower interest rates and avoid penalties from older debts. Learn more about our personal loans here.