Half Of Self Employed In Debt Have No Money To Pay Loans
Although the credit crunch has had a huge impact on a wide range of the population of the UK, those in employment have still had a salary coming in every month to allow them to be able to pay their personal loan debts and other bills.
A new report has revealed that out of those self employed people who may be struggling with their loan and credit card debts, around half are not in a position to repay any of their debts at the present time, due to their drop in earnings.
The report comes from the Consumer Credit Counselling Service (CCCS), a debt charity which offers advice and help to those struggling to keep on top of their personal loan and credit card repayments and in particular for self employed individuals.
So far, the CCCS has offered help to around six and a half thousand self employed individuals who were finding difficulty in paying their loan and card debt, this year alone.
In a large number of cases, where a borrower has several personal loans and credit cards, it is possible to set up a debt management plan for them, whereby they make one reduced payment to the plan and then the money is distributed between their creditors.
However, many self employed people have suffered such a drop in income that they do not have enough available money to be able to meet the repayments on this type of plan, leaving them in the position where they are unable to repay their loans and cards at all.
Geoff Waugh at the CCCS said “The personal finances of the self employed are often complicated, with little distinction between their personal and business finances. It is therefore particularly important that anyone self employed who is struggling financially should seek help as soon as they realise they have a problem. At the very least we can help with ensuring enough money is set aside for everyday living costs.”
