These days, a rising number of people are self-employed. Perhaps the most obvious reason for this trend is the fact that as a result of the economic problems, the jobs market is extremely competitive and there are far more candidates than positions.
However, if you plan to take this course of action, you should bear in mind that there are certain elements of risk involved.
For example, your income is by no means guaranteed, so you may find it harder to plan things in advance. Also, you might have to accrue a certain level of debt and this can lead to problems if you are not careful.
Eventually, you might find that the business debt you have accrued is too great and you are unable to pay it off. Getting to this point can be frightening and you might not know what to do.
That is why you should come to experts such as us here at Cooper Matthews for business debt advice. Our team can guide you through the necessary steps and help minimise the difficulties you experience.
Broadly speaking there are two main options when it comes to resolving self-employed business debt. One of these is an Individual Voluntary Arrangement. This is a legally binding agreement that is designed to help you repay your debts. It allows you to make an offer to repay as much of your debt as you can either in a one-off sum or monthly payments over five years.
If it is accepted, creditors agree to stop any additional interest or late payment charges and they will write off any debt left over when the agreement has finished.
Meanwhile, the alternative is a Debt Management Plan. This is an informal agreement between you and your creditors that allows you to pay a reduced amount each month so that the payments fit within an affordable budget.