Freelance contractors reminded to sort finances carefully

Date: June 10, 2010

Category: Finance for Contractors

Professional contractors, especially those just starting out in self-employment, must ensure they keep their finances in order, it has been advised.

There are dangers associated with using the same bank account for personal and business finances, the Consumer Credit Counselling Service (CCCS) pointed out.

"Keeping your finances separate is essential, as it gives a greater degree of protection," said Geoff Waugh, manager of CCCS's counselling centre for the self-employed.

He warned against mixing finances, adding that taking out loans and credit cards to support a business during tough times can make the situation worse.

The debt charity has also called on employers to take steps to help freelance contractors with money problems.

Quick action means more can be done to help those who are struggling with their finances, CCCS said, suggesting that information on debt be made available in work places so staff are aware of where to go for advice and support.

Posted by John Crawley