Self-employed 'rack up 36% more debt'

Self-employed people can rack up nearly 40 per cent more personal debt than those who are on the payroll, a money adviser says.

In fact, Payplan found that self-employed people under 65 years old owe on average 36.4 per cent more personal debt than those who are not self-employed.

The finding is based on research the adviser carried out into the attitudes and anxieties of self-employed people, employees and the unemployed.

Despite the debt risk, self-employed people are starting out quite young, as almost a third of the freelancer respondents said they decided to ‘go it alone’ before they were 35.

Yet more than half of all those work for themselves “seriously worry” about their personal finances, either “often” or “all the time” – regardless of whether or not they are in debt.

Payplan’s Jane Clack reflected: “More and more people are deciding to work for themselves, perhaps in the hopes of taking control back of their lives, their working hours, and their personal finances.

“However, the results show that, financially, self-employed people are even more at risk, and thousands may already be struggling without admitting it to anyone.”

Feb 5, 2016
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