When you have credit obligations, you are constantly haunted by the need to come up with a debt payment fund each and every month. If you have multiple debts, the burden is greater. You have to make sure that you can meet each and every due date because missing out on a payment or being delinquent can lead to devastating results.
Although the use of credit is widely accepted in our society, that does not mean you should use it excessively. When you fail to manage your credit accounts, it can turn into a debt problem that can seriously hold you back and the full potential of your future.
What you should realize is that debt, regardless if the economy is great or not, is powerful enough to control your life. At least, this is true if you let it get out of hand. If you borrow too much money, the debt will dictate how you will live your life. It will dictate how much money you should be earning. It will also dictate the type of lifestyle that you should live. You will not be free to choose a low-paying profession that fulfills your passion simply because you have credit obligations to meet.
According to the press release published on NewYorkFed.org, the overall balance owed by American households grew by $288 billion in 2015. The increase in debt is caused by student loans ($75 billion) and auto loans ($109 billion). There is an improvement in terms of the delinquency rate – mostly because people are able to pay off their mortgage loans.
The increase in debt and the low delinquency rate means the country is going through a stronger economic condition. If this is true, then you need to take advantage of this time to be aggressive in your debt payment efforts. Obviously, increasing your budget for debt payments would require you to increase your income. You can choose to spend less but that will be very limited considering the amount of debt that you have to pay off. When you choose to earn more, the opportunity to do so will only be limited by what you are willing to do.
When it comes to earning more, one of your options is microwork.
How can microworking help pay off your debt?
Earning more seems to be the proactive way to aggressively solve your debt situation. Instead of making all the sacrifices to spend less, you can simply opt to take on another job so you can open a new source of income.
According to an article published on 247WallSt.com, people have been getting multiple jobs because they admitted that their income is not enough. Workers are more likely to get another job because they are not paid well in their day job. This includes even those who got a college degree. With the high cost of living and the debt payments that has to be met, more people feel the need to increase their income.
Of course getting a second job is easier said than done. Your options are limited because you are committed to another job already. You need to look for a job that will help you earn without compromising your existing obligations.
This is where microwork comes in. According to a definition from Wikipedia, this involves small tasks that make up one project. This is a type of job that can be accomplished remotely and over the Internet. It is work that cannot be automated by an algorithm and requires human intelligence for it to be accomplished well.
There are three important ways that microwork can help you build up your debt payment fund.
Increases your monthly cash flow.
Obviously, this can help you increase your monthly cash flow. It is a job after all. It is a project that you can choose to work on depending on your capabilities and schedule. You will earn from this effort and that extra money can help boost your debt payments. You can quickly get out of debt a lot faster.
Keeps you busy to spend.
Another way that microwork can help you with debt is to keep you so busy that you will not have time to buy anything new. That will keep you from using credit on expenses. Sometimes, we spend because we have a lot of time in our hands. Microworking can keep your free time occupied. Instead of spending, you will earn more money. That means you will increase your income and decrease your spending. That can significantly increase your extra money for debt.
Motivates you to keep your debts low.
Although microwork involves small tasks, it will still require effort. The sacrifices that you have to make will serve as a lesson that will hopefully keep you from acquiring a lot of debt once more. You will think twice before you use credit again.
Now that you know how microwork can help you with your debt payment, let us find out more about this option to increase your income.
Pros and cons of a side gig aside from paying off debts
There are so many ways to increase your monthly cash flow. What makes microwork so special?
To better understand what Microwork is all about, here is Leila Janah, the woman who coined the term. In this video, she is discussing how the idea of microwork came to her.
As you can see, this really started as a way for poor people to earn a living. By equipping them with the basic digital skills and opening platforms for them to connect with clients, these people are given opportunities that used to be unknown to them. Through this work concept, the global market is opened to them so they can support themselves and their families.
This is something that you can also benefit from. Let us see the pros and cons of microwork and how it can benefit your finances and debt situation.
One of the benefits of microwork is that you can make money even at home. As long as you have a stable Internet connection and a reliable laptop or desktop, you can work from home. You simply have to create an account in microwork sites so you can connect to clients looking for contractors to work on their short-term projects. Most of the time, this will not take too long to complete and you will get paid for the job once the client is satisfied. This will give you enough time for your day job and other things that you need to accomplish in your life.
The extra money will really help increase your debt payment fund and beyond that, can also improve your portfolio. If you can find projects that are related to your day job, you can improve your skills even further. It is even possible for you to find better opportunities here.
There are two main disadvantages when you use microwork to help you improve your debt payment budget. The first is competition. As time goes on, the competition to be hired gets tougher. You have to know how to market yourself so you will be accepted after you pitch for a project. If you have the skill, then this should not be a problem. Feel free to brag and showcase your portfolio so you will be chosen above the rest. And if you are awarded a project, make sure you give it 110%. Your performance will be weighed by future clients and a good work history can help you land jobs in the future.
The other disadvantage is the low compensation. Take note that you are not only competing based on skill – also the work rate. It is possible that you are competing with someone who is asking for half of your rate. If they are as skillful as you, they might get awarded with the project. You need to think about that when you pitch for a project. Obviously, this will remain to be a side job but still, it can help give your income a boost.
Microwork is really all about making money online so you can increase your debt payment fund. If you need more, you simply have to choose more projects to complete. But once you are done with your debt obligations, you can stop getting more work and use your free time to relax. Hopefully, the sacrifices you made will help you make better choices when it comes to your use of credit.