Debt is burdensome, and the average American has about $100,000 of debt on average. Ready to see your debt disappear? Passive income streams can be a great way out.
There are a variety of ways to make passive income so finding something with the startup costs and time commitment you need should not be a problem.
Here are a few passive income ideas that may require some sweat equity, but that can certainly help make debt a thing of the past.
Low Startup Costs
When you are in debt, raising capital to get a business or passive income idea going may not be in the cards for you. Here are a few passive income ideas that will keep total costs on the lower end.
Dividend Paying Stocks
If you have some money available to save, maybe put it towards dividend-paying stocks instead of other stock options. The great thing about dividend-paying stocks is you don’t have to think about them. Invest, reinvest the dividends, and watch your portfolio grow.
Related: 15+ Income Producing Assets To Boost Passive Income
High Yield CDs
Although you may not be able to reach the money in your CD for a year, three years, or even five years, it could be well worth it for the percentage you can make.
Compare the percentages you are paying on your debt with the income return of the high-yield CDs, and you will instantly know if the math makes sense.
Build An Online Course
Do you have a special talent or expertise that other people may want to learn from you? Building an online course is easier now than it was even just 12 months ago.
Build the course in your free time and then sell access to it; when done properly, the results can be massive.
Related: Digital Real Estate | A Complete Guide To A New Era of Investing
Affiliate Marketing
If you think you can influence another person to buy something based on your recommendation or use of certain products you use and love, then affiliate marketing is a perfect solution for you. Chances are you have purchased something marketed to you in the last few months (maybe even a few days!).
If you bring quality and useful information to people that impacts purchase decisions, you stand to make a lot of money as an affiliate marketer. You can start an affiliate marketing business with a product and a TikTok or Instagram account!
Related: Start A Profitable Blogging Business In 10 Simple Steps
High Startup Costs
If you have some money to invest and want to use your larger dollar investment to pay down debt, here are a few options.
Purchase A Rental Property
Rental properties are one of the best ways to create passive income, and if you invest in the right one, it can move you out of debt quickly.
Want an even better way to get out of debt?
Purchase a multi-family home, live in one portion of it, and have the other portion pay all of your expenses. When you get out of debt, move on, buy yourself the next place, and keep that multi-family property until you need the money.
Peer To Peer Lending
Peer to peer lending is becoming much more popular. People are choosing to move around bank loans and government loans with restrictions and high fees and go directly with peer to peer lending.
With peer to peer lending platforms, you can invest in loans to a small business or an individual. Interest rates earned on these peer to peer deals are considerably higher than they would be in other accounts.
Flip a Real Estate Property
I would argue that flipping real estate is not always all that passive. However, when you want a large chunk of money to get out of debt, flipping a real estate property could get you there.
Always invest in a market you know well, and make sure you consider both the good and the BAD of what could happen throughout this process.
Final Thoughts
If you have a financial goal to get out of debt, it often requires you to think outside the box. Don’t be stuck on the idea that you will be in debt your entire life. You have control over the steps you take, and building passive income streams is an excellent solution to the issue.
Make sure to stay strong and don’t give up; that’s the main reason most people don’t see success with passive income.
Featured Image Credit: Adobe Stock.
