There are lots of things that can hold your business back, from a lack of social media marketing to having an out-dated website – but what about personal debt?

Many business owners assume that their personal debt can’t affect their business, but in reality, personal debt holds back tens of thousands of businesses every year.

This is because your personal debt can have a big impact on your business finances, whether you have credit card debt or unpaid electric bills.

In fact, one of the first things that lenders will look at when they are assessing your business is your personal finances.

This means that personal debt can make it much harder for you to finance your business using loans, which can be especially dangerous if your business is still relatively new and not well-established.

Personal Debt For Business Owners

If you have personal debt, don’t worry too much; debt is a normal part of life for many people as over 40% of all American households carry some form of personal debt.

The main issue is that business owners tend to have higher personal debt than consumers; the average debt amount for a US consumer is $96,000, while the average debt amount for a business owner is $195,000 – more than double the consumer’s debt.

Reducing Your Personal Debt

If you plan on borrowing money in the future for your business you should start working to boost your credit score and reduce your personal debt immediately.

The first thing that you need to do is ensure that you make all repayments on time; Credit Repair Companies (https://creditrepaircompanies.com/) reminds us that late payments can drastically affect your credit score.

The second thing that you should do is create a budget to ensure that you always have enough money for future payments. If you struggle to pay bills on time you may want to set up direct debits so that you don’t have to worry about making payments on time.

It is also worth considering a credit repair company, as they will be able to assess your personal situation and provide you with personalized, relevant advice that is suited to your business and finances.

Your personal finances aren’t just your private business if you are a business owner, as personal debt can hold back your business from growing and evolving.

Make sure that this doesn’t happen by taking control of your personal debt so that you have freedom within your business.