4 Ways To Make Passive Income With Debt

Adam Del Duca
9 min readDec 30, 2021
Photo by Avery Evans on Unsplash

Ask most people and they will tell you that earning passive income is the holy grail of making money. I mean, who wouldn’t want to make money while you eat, sleep or even Netflix and chill! However, earning passive income is easier said than done, especially when your funds are limited. Fortunately, with debt, earning passive income becomes much easier so let’s now go over four ways to make passive income with debt!

Debt is arguably the most contentious financial instrument there is today. Ask people like Dave Ramsey and he will tell you that debt is literally the devil and that carrying around a credit card in your wallet is a sin. Grant Cardone on the other hand will tell you to borrow as much money as you can to help finance your future prosperity. With people of wealth giving two very different pieces of advice about debt, it’s no wonder that people don’t know how to feel about it.

However, generally speaking, I think that most people are somewhat averse to debt and I really can’t blame them. We’ve all heard stories of people ruining their finances by getting into high levels of credit card debt and others who will be paying back their student loans until they’re 50! In short, we’ve been conditioned to believe that debt is bad but if you ask me, it’s all in how you use it.

I like to think of debt like a car. In the wrong hands, driving a car can be dangerous and if you get into an accident it can be downright fatal. However, if you use the car properly, it can offer many benefits like being able to get from point A to B, making you money if you use it as a tool in your ridesharing business and in the back seat of your car you can ugh…nevermind. In short, debt, just like cars, can be good or bad, it’s all in how you use them.

So, what are four ways you can use debt to earn passive income? Let’s get into that right now!

Number 1: Investing in Real Estate

I believe that everyone, at some point in their life, should have the experience of using real estate to earn passive income. Now, when I say that, I particularly mean owning a physical property yourself and renting it out because there are in fact many ways to earn passive income with real estate but we will talk about some other options a bit later.