New research from charity Money Advice Trust has shown that the self-employed could be falling into tens of thousands in debt.
Money Advice Trust run Business Debtline. They've seen an increase in the number of calls, as well as the levels of debt small business owners have fallen into trying to keep their businesses afloat.
Over the last year, 49 per cent of people contacting Business Debtline had debt totalling over £10,000, while 23 per cent owed over £30,000.
Across 2017, Business Debtline helped 36,000 small business owners and sole traders with their financial difficulties.
It’s estimated that around 15 per cent of the UK workforce is now self-employed. The report suggests that as this number grows, more support is needed to stop businesses from falling into debt.
The research found that there were three main factors that caused small business owners to fall into debt. Those were:
While sometimes circumstances mean that debt is unavoidable, you can take some steps to lower the risks that Money Advice Trust have highlighted.
Have you had a problem with debt since going self-employed? Let us know in the comments.
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