Debt Management plans could hold the key as more and more Small business owners across the UK are resorting to personal insolvencies to keep hold of their businesses. CreditPal and the Forum of Private Businesses have both corroborated official figures that suggest the trend.
Credit Cards, personal savings and loans from friends have all been used by small businesses to keep their company afloat. This has lead to a rise in personal insolvencies, due to the business owners being unable to keep up repayments on the personal debts taken out for business reasons.
41% of those surveyed by the Federation of Small Business said that they had used personal savings to fund their business, with 43% using overdrafts and 21% using personal credit cards.
15% of business owners had sacrificed family holidays, and many have raided pension funds in order to make their debt repayments. Free debt advice from MRA debt help would point business owners in the right direction, and offer a suitable means of getting out of debt.
I would agree with you that debt consolidation can be a very useful tool in the right circumstances. It pays to do your research before deciding on a course of action.