Self-employed in 36% more debt than employed and unemployed
Over half of UK self-employed admit to worrying about personal finances, yet number of people opting to start their own business is rising
Self-employed people in the UK are more likely to experience serious money problems than both employed (on payroll) and unemployed people; research from PayPlan has suggested.
The research, which looked into the attitudes and anxieties of self-employed workers, found that freelancers and self-employed people owe on average 36.4% more personal debt than those who are in full-time work or not in employment.
The study also revealed that more than half of self-employed people (50.4%) “seriously worry” about their personal finances – either often or all of the time – regardless of whether or not they are currently in debt.
Despite these financial concerns, the research reports a rise in the number of self-employed and indicated that almost a third (32.6%) of people have gone self-employed before the age of 35.
PayPlan money adviser, Jane Clack, said of the findings: “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.”
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