News: Self-employed debt reaches an ‘alarming’ level

moneyNew figures from a debt charity have revealed a high amount of debt among self-employed people running their own businesses.

StepChange described the rate of debt growth as ‘alarming’, as it revealed a £10,000 rise in the average amount of debt of its clients over a year. The charity said the average amount of debt it saw from self-employed people recently reached £27,739.

The amount of outstanding debt is even higher for self-employed people whose business has failed, with the average standing at £45,292.

In comparison, full-time workers who sought help from the charity last year owed an average of £19,455, whilst part-time staff owed an average of £14,582, and the unemployed owed £11,888.

Delroy Corinaldi, external affairs director at StepChange, said self-employed clients “have most likely turned to loans to kick-start their enterprise but with lower than average incomes and high expenditure this can lead to spiralling debt problems.”


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Kasey writes about the latest small business and website news for bOnline. Find Kasey on Google+, or follow bOnline on Facebook, Twitter, LinkedIn and Google+

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