Self-employed are ‘hardest hit by recession’

Britain’s self-employed people are suffering the most during the current economic climate, one expert has claimed.

According to recent statistics by ClearDebt, those working for themselves have experienced a drop in annual income from £36,000 to £32,000 over the last year, while their average unsecured debt equals £40,078.

Managing director of ClearDebt Andrew Smith said the figures could indicate “a major accident waiting to happen”.

He remarked: “This may show that banks are unwilling to make business loans to these people – who will play a major role in economic recovery.”

According to Mr Smith, the government should take note of these statistics as they are particularly concerning.

The data was compiled from 11,853 indebted individuals across England and Wales, comparing the first half of 2009 to the first six months of last year.

A recent study by the Centre for Economics and Business Research and TaxPayers’ Alliance predicted that the UK national debt could reach £2.34 trillion by 2018.

By Francis Finch

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