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Self employed workers are struggling to repay their debts as new figures show that six and a half thousand self-employed people are seeking debt management solutions.
The Consumer Credit Counselling Service’s Self Employed Centre reported that many of these workers’ financial situations were so bad that they were only in a position to help 1,600 of them as over half of callers had a deficit budget.
This figure is very similar to that reported in 2009 in the depth of recession, when only nine per cent of people calling the centre were in a position to start repaying their debts through a debt management plan (DMP).
“The personal finances of the self employed are often complicated, with little distinction between their personal and business finances,” said Geoff Waugh, CCCS Self Employed Centre head.
“The economic difficulties of the past few years have meant that a lot of people are carrying out work that they would have previously paid other people to do.
“This has left many self employed people without work and unable to maintain their debt commitments.”
The service industries most affected by debt were hairdressing, gardening and taxi driving to name a few – the types of services the public are likely to cut back on when saving money.
Further research by Scottish Widows Savings reveals debt is continuing to burden the whole of society with one in ten adult children having to support their parents financially, with over a third of these parents using the money to pay off debts. The average amount loaned to parents is £8,250 the fourth which is up from £6,500 in 2008.
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