Abacus Daily Debt News

The self-employed unable to repay debts?

A number of self-employed workers in the UK cannot afford to pay their debts, it has been suggested.

According to the Consumer Credit Counselling Service's (CCCS's) Self-Employed Centre, half of those contacting the charity do not have the money to repay what they owe.

It was approached by more than 6,500 individuals this year, yet only 1,600 were able to enter a debt management plan because more than 50 per cent of callers had a deficit budget.

A significant number of these people were from services industries such as hairdressing, gardening and taxi driving, the organisation explained.

Geoff Waugh, head of the CCCS Self-Employed Centre, noted: "The personal finances of the self employed are often complicated, with little distinction between their personal and business finances."

A recent study carried out by Age UK revealed unemployment among people over the age of 50 is currently at a ten-year high - suggesting many may soon require debt management help.

By Joe Shervin