Self-employed 'need to be attentive to finances'

By Sarah Engle, Mon 10 May 2010 - Published in Loans

Self-employed people should be careful to distinguish between their personal and business finances, it has been claimed.

A spokesman for the Consumer Credit Counselling Service pointed out that many people have become self-employed after losing their jobs during the recession and reminded them of the risks involved in this.

The representative recommended that the self-employed keep their business and personal finances separate, as this will prevent problems in one area from affecting the other.

Highlighting things to avoid, he continued: "Some may take out loans and credit cards to support their businesses during tough times or use the same bank account for both business transactions and their personal day-to-day spending."

The spokesman also advised self-employed people with personal debt problems to contact his organisation, as the charity will be able to set up a financial plan which increases the chance of their business surviving.

Recent research from Kensington Mortgages found that 1.2 million people have started working for themselves in the past two years.

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