Can You Still Start a Business with Bad Personal Debt?

Debt is one of the biggest problems that has plagued mankind ever since the beginning of civilization. Today, that plague seems to be worse. With student debt, crippling many even before they dip their feet into the world of employment, most people live all the life in debt.

To make matters worse, the 9-to-5 doesn’t seem to help clear the mountains of debt many are under.

This has led to the rise of the startup culture. With its promises of financial freedom, many are seeking greener pastures in starting their own businesses – be it side hustles or full-time businesses.

But is it even possible to start a business with bad personal debt?

Let’s find out, shall we?

What Does it Really Take to Start a Business?

The first step to starting a business is to understand what you really need to start a business that will thrive. Let me share the top 3 with you.

A Profitable Idea

Every business starts off as an idea. That’s the first and most important thing you need to start a business. But not just any idea mind you, it has to be an idea that you can sell. Ideas are plentiful but not all of them translate into profit.

Your most important task then is to come up with an idea and define it clearly. 

A Bankable Business Plan

Once you have your idea, you will then have to translate it into a business plan. A business plan so good any investor will clearly see the profits even before the inception of your startup.


This is one of the excuses people give for not starting a business – “I just don’t have the time”. While I may not have an idea of your schedule, one thing I know is that if you truly want to break free from the chains of debt, you can make time for a business.

When it comes to making time for your business, all you need is a couple of hours a day. As they say, Rome was not built in one day. The few hours you spend on your side hustle in a day will go far in helping you set up a profitable business. True, you will have to sacrifice your evenings and weekends, but it will definitely be worth it in the long run.

Do Your Personal Finances Come into the Equation?

While personal finances shouldn’t stop you from starting your own business, they do have an impact, especially if you need to borrow money for capital. However, with a solid business plan, obtaining funding for your small business becomes easier.

That doesn’t mean you should ignore your personal debts though. There are a number of options you can pursue in order to manage your debt, such as debt consolidation among many others. Take control of your finances and work toward building a good credit record with the help of a financial service provider. The advantage is that you‘ll pay less interest with a debt management plan that will be recommended and tailored to your specific situation. This will also make it easier for you to secure any funding that you will need to launch your business.

Starting a Business with Personal Bad Debt – It is Possible

Personal bad debt is no excuse for not starting a business. If anything, it should actually drive you to it. And what better time to start than now? So go for it.