‘My debts stop my business growing’
Dorothy Dionisio, 35, has launched her own business, but is struggling to expand it
“I degreedrama have anda in film, but I left university in 2004 with £20,000 of student loan debt and failed to get a job in that field. I spent years working in
promotions, retail and call centres, then two years ago I took out a £1,000 loan and used it to re-train as a beauty therapist and masseur. I’m now qualified and have set up a business at home, where I live with my partner Matthew,
46. promotionalI top up my work earningsin shops with and supermarkets, bringing home £800 to 1,000 a month. “I don’t have many clients and I want to rent a shop so I can focus on my beauty work, but I have so much debt I don’t know how I can do it. As well as the loan, I owe £700 on a credit card, £3,000 on a bank loan and £500 of overdraft debt. I am currently paying £5 per month to a debt management company to keep my debts creditorsare frozenat bay. and ForI don’t now my have to pay back my student loan until I’m a higher earner. “I want to build up my business to get into a better financial position, but how can I while I still owe so much money?”
SARAH’S 3-POINT PLAN
1) BUILD CUSTOMER BASE Dorothy should consider offering discounted treatments or freebies to get people through the door. She’ll get repeat business and word will spread. Her friends and family can also recommend her. She should create a Facebook page with a treatment list, prices and reviews for customers to share. 2)STAY AT HOME Taking on premises isn’t the right move. Instead, she should look at converting a room or garage into a treatment room. It would be less risky and more cost effective. Or, she could be a mobile beauty therapist and visit customers at their homes. 3)GET A GRIP ON DEBTS Dorothy may not need to pay management fees, as National Debtline (nationaldebtline.org), Stepchange (stepchange.org) and Payplan (payplan.com) offer this service for free. If Dorothy decides to change, she should compare and decide which one is right for her. Also, she must check there’s no cancellation fee with her existing provider.