You run a business which often means doing whatever it takes to get things done. For a lot of small business owners, that means using personal cash flow and credit to support business expenses. Somewhere along the way your personal credit cards, loans and medical bills piled up with no clear plan to pay them down. When you’re self-employed, business and personal money blur together fast, and irregular income makes it worse.
The way out comes in two moves: separate and inventory the two sides, then match your personal unsecured debt to the right path.
Quick Answer
Separate your business and personal money first, then inventory your personal unsecured debts. From there, match them to one of four paths: a do-it-yourself payoff, credit counseling or a debt management plan, a debt consolidation loan, or a debt relief program. A free evaluation can tell you your options.
Why Personal and Business Debt Get Tangled Up
When the business needs something, you find a way to pay for it and sometimes that means dipping into your personal finances and credit. Equipment, software subscriptions, a last-minute flight to see a client: it all goes on whatever card has room. During quiet weeks, personal bills get pushed onto credit too, just to keep the lights on until the next payment clears.
That’s the nature of self-employment, not a personal failing. If you want a companion read on keeping your business finances healthy, our guide to building a solid financial foundation covers cash flow and business credit in more depth.
How to Untangle Your Personal and Business Finances
Separate and inventory your business and personal finances
Start by giving each debt a clear owner. Follow the SBA’s steps to separate your business and personal finances:
- Open a dedicated business bank account.
- Get a business identifier (a DUNS number) to build a separate business credit identity.
- Put utility and service accounts in the company’s name.
- Apply for credit in the company’s name, not your own.
- Use a business credit card so business charges stay off your personal statements.
Then, set a baseline you can actually hit
Here’s a discipline habit that works when income swings: set your monthly budget baseline off your lowest-income month in the last year, not your average. An average assumes good months that may not show up. For more on budgeting around irregular income, read our guide on dealing with debt when you’re self-employed.
Once the two sides are separate, inventory only your personal unsecured debts. That’s the list you’ll work from next.
Which personal debts can actually be helped?
Not every debt qualifies for the same solutions. Here’s how eligible and ineligible debts break down.
Which debts are eligible for debt relief?
Eligible (unsecured personal debt)
- Credit cards
- Personal loans
- Medical bills
- Store credit cards
- Some private student loans
Ineligible
- Mortgages and home equity loans
- Auto loans
- Federal student loans
- Tax debt
- Child support and alimony
- Any secured debt
Our program covers unsecured debt. You need $5,000 or more in eligible unsecured debt to enroll. Eligibility is confirmed during your free consultation.
Have a certified debt specialist review which debts are eligible.
Where Do You Turn? Four Paths, and Who Each Fits
Once you know what you owe, match it to a path. Each has a clear best fit and a real risk.
Do-It-Yourself Payoff (Avalanche or Snowball)
- Best for: owners who can cover their minimums and still set money aside each month.
- Risk: slow going, and hard to stick with when income swings from month to month.
Credit Counseling / Debt Management Plan (DMP)
A credit counseling agency can offer budgeting guidance and may enroll you in a debt management plan that consolidates your payments and can lower your interest rates.
- Best for: owners just starting to struggle who want guidance and tools.
- Risk: a DMP can’t lower your principal balance, typically lasts 3 to 5 years, is limited to unsecured debt, may require you to stop using all credit lines and may charge a setup fee.
Accredited Debt Relief is not a credit counseling agency.
Debt Consolidation Loan
One new fixed-rate loan pays off your existing debts, leaving a single monthly payment.
- Best for: owners with strong credit who can comfortably afford the new payment.
- Risk: approval and rate depend on your credit, and you still owe the full amount plus interest. Terms typically run 4 to 84 months depending on the loan.
Debt Relief Program
A debt relief program rolls your eligible balances into one lower monthly payment and targets your balance rather than your interest rate.
- Best for: owners whose minimum payments are already unaffordable.
- Why it fits self-employment: it’s built around what you can afford, not your credit score, and checking your options doesn’t affect your credit.
- Timeline: clients typically become debt-free in 24 to 48 months. You need $5,000 in unsecured debt to be eligible, though the program is a stronger fit at $10,000 or more.
- Risk: debt relief programs can affect your credit for a time, and results depend on your creditors and your ability to make the monthly deposits.
Ready to weigh them side by side? You can compare your debt relief options in one place.
How does the relief program reduce what you owe?
Accredited Debt Relief’s program works in four steps:
- Free consultation. A certified debt specialist reviews your debt, income and obligations. This won’t affect your credit.
- A personalized program. They build a plan around what you can afford, with a target graduation date.
- One monthly deposit. You put a single monthly deposit into a dedicated account.
- A target debt-free timeline. Because the program targets your balance, clients typically become debt-free in as little as 24 to 48 months.
Every specialist is IAPDA-certified. Fees are success-based, with no upfront fees.
What could the math look like?
Here’s an illustration, not a promise. Most clients save 40% or more on their eligible monthly payments. Say your eligible monthly payments total $1,500. A 40% reduction works out like this:
- $1,500 x 0.40 = $600 saved each month
- $1,500 – $600 = $900 new monthly payment
The $1,500 input is just an example, and your actual result depends on your situation, so this isn’t a guaranteed outcome. A specialist can run the numbers on your real balances.
Find Your Path Forward
A certified debt specialist can tell you which path fits. The consultation is free, comes with no obligation and won’t affect your credit. Program fees are success-based, with no upfront fees. Get a free savings estimate when you’re ready.
The information on this site is provided as a general resource and does not constitute legal, tax, or financial advice. For guidance specific to your situation, we recommend consulting a qualified professional. Individual results may vary.