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5 Ways to Generate More Cash to Pay Off Your Debts

March 4, 2013 by 4 Comments

The following is a guest post from David Bakke of Money Crashers Personal Finance.

Ready to tackle that credit card debt? Initially, you must come up with a plan to reduce your spending – but after that, how about taking a more proactive approach by generating additional income?

If you can find a little bit of extra time to implement a few simple ideas, you’ll get some extra cash to help pay off those debts faster. So turn off the “Seinfeld” reruns, forget about your Facebook page for a moment, and follow these five tips to become a member of the debt-free club:

1. Sell Your Stuff

If those old college textbooks and last season’s clothes are still sitting in your closet, clean them out and turn them into cash. Old electronics such as digital cameras, GPS systems, and cell phones are a great place to start.

You can open a seller’s account on eBay, or to get better bang for your buck, consider selling on Craigslist which is 100% commission-free. Ship your items quickly and package them securely – and with Craigslist, always meet in an open, public place and accept cash as your only method of payment.

2. Complete Paid Online Surveys

You’re unlikely to hit it rich by filling out surveys, but every little bit helps. Payouts from some of the online survey websites are around $2 to $3 per completed survey, which usually take about 30 to 45 minutes to complete. If you’ve got some downtime at night, this can be a low-stress way to make a few extra bucks. Just be sure you’re dealing with a reputable website, such as Lightspeed Research and Pinecone Research.

3. Start Your Own Business

Starting your own business is a great way to bring in some extra cash. For instance, you may want to consider launching a consulting business. Pick a subject you’re well-versed in, print some business cards, and advertise your services on social media websites like Facebook and Twitter. You never know – it may blossom into a full-time gig.

4. Participate in Paid Focus Groups

To participate in a paid focus group, you most likely need to live in or near a big city – however, if this is an option, the payouts are tremendous. When you sign up at a website such as Delve or Focus Pointe Global, questionnaires are periodically sent to your inbox.

If you meet the qualifications, you will be invited to participate in a paid focus group. It could be a roundtable discussion or a group study in which you answer questions on a response pad. You can make $50 to $75 for each hour of your time.

5. Rent Out Your Car

This may seem like a scary thought, but the website RelayRides has taken the fear out of the equation. You decide your price, approve the people who rent your car (after they’re pre-screened), and RelayRides is responsible for insuring your car. According to the website, you can earn as much as $1,000 per month. If your car is just sitting in the garage, put it to work for you.

Final Thoughts

If you find yourself with a significant amount of cash after implementing these ideas, stay disciplined and be sure to apply it to your debts. The sooner you get out of debt, the sooner you can resume your normal lifestyle. If you happen to find great success with these strategies, keep them going. Your retirement savings or your child’s college education will feel like less of a burden if you get ahead of the game.

What other ways can you think of to generate cash?

David Bakke is a small business owner who managed to pay off over $30,000 in consumer debt he racked up during his college years. He shares his tips and experiences on the blog Money Crashers Personal Finance.

[image via flickr]

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About Carrie Rocha

I am passionate about helping people live within their means so they can get out and stay out of debt. I live in Minneapolis, MN with my husband and two little girls.

  • Jen

    My husband and I have paid down a lot since January with the help of Mint.com, which helps you prioritize, plan, and goal-set to become debt free. Also we threw our entire tax return at our debt, which helped a lot, as did transferring balances to 0% cards.

  • Deb Lorsung

    I tried to join both the survey sites. I couldn't find where to join on their site. Finally, I found the Pinecone registration, but didn't qualify. I still can't find how to join on Lightspeed.

    We were highly in debt when my self-employed husband had 4 hospitalizations within a short period of time. We sold just about everything we owned, worked with our credit union (Affinity Plus in the Twin Cities) to work with our creditors and continued to be faithful at paying bills down, doing offers in compromise, etc. I love using Quicken for keeping track of our income/expenses, going to the accountant periodically to keep on track (they're experts and can have suggestions you may have never thought of. My first visit was $125.oo but saved us thousands of dollars with a recommendation she gave us). We're not out of debt yet, don't own many things, but we're happier than we've been in 10 years without the monumental debt hanging over our head. One other idea is doing the snowball effect recommended by Dave Ramsey.Thank you Carrie at helping us keep our grocery bills minimized!

  • http://www.libertyinvesting.com/blog Aram Durphy

    I'm not sure about some of the recommendations here (online surveys aren't going to make much of a dent). Creating and sticking to a budget is the best way for most people to pay down debt. Also, prioritize your savings: if you have savings going into lower interest accounts, pay down the higher interest debt with it first.

  • http://www.pocketyourdollars.com Laura Wales

    Aram – I agree that these suggestions might not produce a lot of money, but the point was how to generate *extra* cash, not how to manage the cash that you already have. Every little bit helps.