The Citizens Advice Bureaux (CAB) has revealed that a third of the problems about which it is consulted by self-employed people relate to debt.
With the number of self-emoyment can be a positive route back into work, but people need to assess the risks when starting out on their own.
“It is clear that for some people self-em<!–>ployment is not offering financial security. People are desperately turning to personal credit to keep their companies afloat.”
Palmers’ insolvency specialist Andrew Skinner said: “Self-employed people can find their personal and business finances becoming inextricably linked, which can cause real problems if their businesses are not performing well.
“Specialist insolvency advice can help people struggling with financial issues to make informed decisions about their options for dealing with debt. While they may be fear that a formal insolvency is the only way out, there are other alternatives and the earlier advice is sought, the more likely it is that these can be used.”