Two Side Hustlers Share How They Used Additional Income to Eliminate Debt

When Courtney and Lindsey Norton got married 12 years ago, they began sharing more than a last name — they also shared six figures of debt. With an $80,000 mortgage, $80,000 in student loans, $10,000 in credit card debt, $3,000 in auto loans, and even payday loans, the Nortons found themselves in a tough financial situation. “It was really, really bad,” Lindsey recalls.

In order to raise their three kids and begin repaying their debt, the Nortons knew they needed additional income. Lindsey, a skilled baker, and Courtney decided to start selling homemade cookies out of their kitchen. The side hustle was a huge success, and five years later, they had paid off all their debt and even opened a storefront for their cookie business — Nookies Cookie Co. — all while working their day jobs.

Rachel Seymour, living in a different part of the country, also faced a debt problem. After accumulating credit card debt while living in New York City, she decided to wait tables and pick up freelance work to help pay off her debt. Sacrificing her free time, Seymour became debt-free in less than a year.

These stories are not unique. According to Bankrate’s 2024 Side Hustles Survey, 36 percent of Americans have a side hustle, and 20 percent of those use it to pay down debt. Many Americans struggle with credit card debt, with 44 percent carrying a balance from month to month. In response, 21 percent of Americans with credit card debt have worked extra hours or taken on a side hustle specifically to earn money for credit card debt payoff.

The key insights on using a side hustle to pay off debt include various uses of side hustle income such as discretionary spending, regular living expenses, savings, and debt repayment. While debt repayment may be the least popular use of extra funds among side hustlers, it is a reality for many Americans.

The success stories of the Nortons and Seymour demonstrate how a side hustle can be a powerful tool for debt repayment. By leveraging their skills and putting in extra work, they were able to significantly reduce and eliminate their debt burdens.

For those considering using a side hustle to pay down debt, it is important to ensure that the side hustle is legitimate and to calculate a repayment plan. Researching IRS rules for gig work, tracking income and expenses, and paying quarterly estimated taxes are essential steps. Additionally, considering insurance for the side hustle, opening a business banking account, and avoiding scams are crucial for financial security.

Estimating additional monthly income, creating a debt repayment plan, and choosing a suitable repayment strategy are key components of using a side hustle to pay off debt. By following these tips and staying consistent, individuals can accelerate their debt repayment journey and achieve financial freedom.

In conclusion, debt repayment takes time and consistency, but earning extra income with a side hustle can help speed up the process. The stories of the Nortons and Seymour serve as inspiration for anyone looking to tackle their debt and improve their financial situation. With dedication and strategic planning, it is possible to overcome debt and achieve financial stability.