Self-employed Brits Struggle to Repay Debt

According to the Consumer Credit Counselling Service, it will be unable to help 50% of self-employed Brits, who have contacted its Self-Employed Centre in 2010. The debt charity claimed that half of the people who contacted it did not have enough income to switch to a repayment plan. In fact, some of them did not have enough money to meet basic living needs or even pay the fees for going bankrupt.

Only 1,600 of self-employed Brits, who contacted the debt charity, had money to go on a debt management plan, which allowed for repayment of their loans at a reasonable rate.

Others were recommended to either go bankrupt, or take out an IVA (individual voluntary agreement) or a debt relief order. A small proportion of struggling borrowers were able to meet minimum monthly debt repayments once they received some financial help.

Mr. Waugh, of CCCS Self Employed Centre, said that the major reason for the growing number of self-employed Brits struggling with debt is the financial crisis, which made many people reconsider their expenditures.