How personal debts impact the self-employed
There are various reasons for encountering debt problems when you’re self-employed. You may have underestimated the start-up costs, or overestimated demand for your services or products. Or you might have encountered unexpected bills, or had issues with late payments. Whether it’s business-related or not, always remember that support services aren’t going to judge you on how you accumulated debt problems.
Previous research has shown that self-employed families were nearly twice as likely to be behind with a household bill, and that it can be more challenging to access credit. And the latest IPSE research reveals 37% are incurring business debt, along with an increase in money and job-related stress.
The impact of your debts will depend on your individual situation, and whether you’re working as a sole trader or the director of a limited company. If you haven’t separated personal and business finances, or you’re liable for all business costs, then it will create more issues. But if you’re worrying about money, it’s likely to also hurt your ability to concentrate and focus on work.
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