Things to Watch Out For if Trying to Make More Money to Reduce Debt
The most effective way to fight your debt burden is to create more income. But be careful as to the method you use to create more income. Some methods look good on the surface but could actually put you in a worse condition than before. This article gives a few warnings.
How are you ever going to get out of all this debt? The first obvious answer to this question is to make more money. But getting additional income should be done carefully so as not to jeopardize the income sources you already have. Let’s look at some things to watch out for:
Make sure if you quit your job that you are going to a bona fide better opportunity that will help you pay down debt. When people are desperate to get out of debt they start looking for a higher paying job. If you find a job that seems like it pays higher, make sure the grass is greener before you quit the job you have. For example, sometimes people will get a job that offers higher pay but the commute is farther. In this case they can actually end up spending more to work and any gain in income is canceled.
Be very careful when you freelance on the internet to make more money to pay down debt. Some people have skills that allow them to work on the internet and make extra money to apply toward their debt. Typically these are writers, programmers, web designers, graphic artists, and translators. And, the first places they will try their hand at freelancing is on the project bidding sites. Here is a word to the wise: Do not get involved in low-bidding just to get extra work. Your extra pay will be low and your work will be far too much for the pay. You are much better off trying to market your own talents directly and make extra money based on what the market will pay for your products.
Do not moonlight to pay down debt if it jeopardizes your main job. The decision to moonlight at a second job with the goal of reducing your debt does not work for everyone. It really all depends on what your day job is. If your day job is a professional type where you could be called in at irregular hours then moonlighting might jeopardize your main job as there would be conflicts. Moonlighting can also be a problem with middle-aged and older people because they are not getting the proper amount of rest.
Do not give your employer too much free work. Salaried people go through this quite often. The employer expects you to stay until the job is done and while this might be okay once in awhile, if you do it too often it is almost like taking a pay cut (working more hours at the same pay). What happens is it begins to interfere with free time where you could be pursuing a part-time job or running garage sales to make extra money to pay down your debt. Learn ways to diplomatically avoid working too much “free” overtime. You don’t need to get into all the details of your debt with your employer. Just politely say that you cannot stay late tonight or you cannot come in on Saturday. Remember that this applies only to exempt and salaried employees who do not get paid extra for extra hours worked.
Watch out for predators who know you are in debt. This article does not get into all the ways people find out on the internet that you are having debt problems but for some reason your email inbox will start getting spammed with debt consolidation and bankruptcy relief offers. It could be completely coincidental but when one is having debt problems, this spam draws more attention. Always keep in mind that where there is a creature bleeding in the ocean you are more than likely to find sharks. And so it is with debt.
It is more than certain you will need more money coming in so that you can make a dent in your debt. However do it carefully so that you do not harm your health or the established income source you already have.