Confronting Personal Debt: The Hidden Drain on Your Business Success
In this episode, we tackle a deeply personal but critical topic—personal debt, and how it silently affects business owners, even those running seemingly successful companies.
I’m Deb, a Profit First Professional and author of How to Build a Financially Healthy Business. Today, we’re talking about a common paradox: your business might be generating decent revenue, but behind the scenes, you’re burdened with credit card debt, loans, or overdrafts. That financial pressure doesn’t just affect your bank balance—it impacts your mindset, your motivation, and your quality of life.
We dive into the Snowball Method—a practical, proven approach to systematically eliminate personal debt, restore peace of mind, and lay a stronger foundation for your overall financial health. Because real profit isn’t just what’s on the business books—it’s what you actually get to keep.
This episode is a wake-up call, a relief, and a plan all in one—for anyone feeling weighed down by hidden financial stress.
About the Podcast:
On this episode of the Financially Healthy Business Podcast, we’re shining a light on a silent struggle faced by many entrepreneurs: personal debt.
I share how personal financial burdens can erode confidence, increase anxiety, and sabotage your business growth—even when things look fine on paper. We discuss how to take back control using simple, structured debt-reduction strategies like the Snowball Method, and how to shift your focus from just making money to actually building wealth.
If you’ve ever felt alone in your financial stress, this episode will reassure you—and give you practical steps to move forward with confidence.
Each episode in this series offers honest, actionable advice to help you grow your business and your bank balance. With 15–20 minutes of focused content, you’ll gain powerful insights without the overwhelm.
Let’s get rid of the debt—and the shame—and build something truly sustainable, starting today.
Takeaways:
- The podcast emphasizes the importance of personal debt management for business owners seeking financial stability.
- Personal debt can exist even when a business generates substantial revenue, leading to feelings of being financially broke.
- Implementing the Snowball Method can effectively reduce personal debt by prioritizing smaller debts first.
- Achieving debt freedom not only provides financial relief but also enhances emotional well-being and decision-making capabilities.
Links referenced in this episode:
Companies mentioned in this episode:
- Accounts Ladies
- Accounts Office Academy
- how to Build a Financially Healthy Business
Transcript
Foreign Healthy Business Podcast for business owners who want the confidence on cash flow that supports the life they actually want to live.
Speaker A:I'm Deb Halliday, Profit first, professional founder of award winning accountancy practice the Accounts Ladies and the Accounts Office Academy and author of how to Build a Financially Healthy Business.
Speaker A:Learn how to take control of your finances, reduce stress and grow sustainably.
Speaker A:Because your business should support your life, not consume it.
Speaker A:Let's get started.
Speaker A:Welcome back to the Financially Healthy Business Podcast.
Speaker A:I'm Deb Halliday, author of how to Build a Financially Healthy Business and today we're talking about a subject many business owners avoid, but one that can quietly drain your energy, finances and freedom.
Speaker A:Personal Debt if you're earning decent revenue but still feel broke.
Speaker A:If your business looks healthy but you're up at night worrying about credit cards, loans or overdrafts, this episode is for you.
Speaker A:Because real profit isn't just what your business makes, it's what you get to keep.
Speaker A:And if your personal finances are in chaos, it's almost impossible to feel in control no matter how well your business performs.
Speaker A:Let's change that.
Speaker A:The problem Profit versus Personal Debt here's the truth that no one talks about.
Speaker A:You can have a six figure business and still feel broke if you're quietly carrying thousands of pounds in personal debt.
Speaker A:It might be credit cards used to get through slow months, personal loans taken out when business cash flow was tight, finance agreements, overdrafts or buy now, pay later schemes.
Speaker A:It builds slowly.
Speaker A:It often starts with survival, but it becomes a cycle and it undermines every win you achieve.
Speaker A:Debt steals peace of mind, confidence and your ability to enjoy the money you've worked hard to earn.
Speaker A:So we need a strategy to break free.
Speaker A:Case Study Steve's Debt Freedom Journey Remember Steve from episode 4?
Speaker A:Once he started paying himself consistently, we also tackled his personal debt, which had built up during the years he wasn't paying himself at all.
Speaker A:We used a strategy called the Snowball method.
Speaker A:I'll explain it in a minute.
Speaker A:In under a year, Steve cleared his credit card balances and his personal loan.
Speaker A:He had structure.
Speaker A:He had a plan.
Speaker A:And for the first time, he had momentum.
Speaker A:The weight lifted off his shoulders was visible.
Speaker A:Debt freedom isn't just a financial milestone.
Speaker A:It's an emotional release.
Speaker A:Why you must face it Debt is deeply emotional.
Speaker A:It can feel shameful, heavy, even embarrassing, especially when your business looks successful from the outside.
Speaker A:But avoiding it doesn't help.
Speaker A:If you're only making minimum payments, you're probably not reducing the balance in any meaningful way.
Speaker A:And the longer it lingers, the more it costs you in interest and mental energy.
Speaker A:So let's get clear.
Speaker A:Without judgment, debt is just data.
Speaker A:And every piece of data can be turned into a plan.
Speaker A:The Snowball Method Simplified this is the strategy I recommend, and it's simple.
Speaker A:Step one List all your debts.
Speaker A:Include credit cards, loans, overdrafts, finance plans.
Speaker A:List the balance, minimum payment and interest rate.
Speaker A:But don't worry about that yet.
Speaker A:Step 2 Order by smallest balance to largest.
Speaker A:Ignore the interest rates.
Speaker A:We're aiming for psychological wins.
Speaker A:Step 3 Make minimum payments on all of them except the smallest one.
Speaker A:Step four Put all your extra money toward the smallest.
Speaker A:Every spare pound goes to crushing that first balance.
Speaker A:Step 5 Once that one is paid off, roll its full payment into the next one.
Speaker A:This creates momentum.
Speaker A:Like a snowball, each cleared debt gives you a confidence boost and frees up more money to attack the next one faster.
Speaker A:It works because it's measurable, motivational and manageable.
Speaker A:Mindset Shift Debt Free equals pay rise Think of it this way.
Speaker A:Every debt you eliminate is like giving yourself a pay rise without needing to earn more.
Speaker A:That £200amonth credit card?
Speaker A:Gone.
Speaker A:That £150 loan payment?
Speaker A:Yours now.
Speaker A:That overdraft fee out of your life.
Speaker A:Debt freedom gives you choice.
Speaker A:You can save, invest, spend more freely or reduce how much pressure your business is under.
Speaker A:And the emotional lift?
Speaker A:Huge because when your personal finances are strong, you make better decisions in your business.
Speaker A:This week, I want you to list every personal debt you're carrying without judgment.
Speaker A:Order them from smallest to largest.
Speaker A:Pick the first one and make a plan to pay it off, even if it's £20 extra a month.
Speaker A:Track your progress and celebrate every small win.
Speaker A:Visit howtobuildafinanciallyhealthybusiness.co.uk if you haven't yet grabbed the book, you'll find the full breakdown of this method in chapter four along with Steve's full story.
Speaker A:Next time, we'll shift gears and look at business debt how to decide what's good versus bad debt and how to pay it down while still growing.
Speaker A:Thanks for joining me.
Speaker A:You are not your debt.
Speaker A:You are capable, in control and absolutely worthy of financial peace.
Speaker A:See you in the next episode.
Speaker A:Thanks for tuning in to the Financially Healthy Business podcast.
Speaker A:If today's episode helped you take a step closer to building a business that supports your life, share it with a fellow business owner.
Speaker A:Follow the show or leave a review.
Speaker A:It all helps to get the message to the people that need it.
Speaker A:Head to how to build a financiallyhealthy business.co.uk and explore the tools, resources and online programs.
Speaker A:You didn't start your business just to survive, you started it to thrive.
