For some reason in the last couple of weeks I have been contacted by three landscape gardeners, all of which had debt problems, and were now seeking a solution.
I do not know why there has been a rush of people with this type of job calling now for help. It may be a coincidence or it may be a symptom of some wider problem.
The people seeking help from me have all said that they have had a drop off in trade, this has been a mixture of local government work and private work. One of the debts was going bankrupt because of personal guarantee liabilities that he built up as a result of a failed limited company business which folded.
It is not necessarily a problem to have debt. The problem comes when there is an inability to meet the minimum monthly payments on the debts. For many debtors, problems arise when loans have been taken to help fund the business can not be repaid because income into the business has fallen off.
When income into a business does fall, a business owner will generally continue to take wages as these will be needed to fund the family home. If there is not enough income in the business, then we often find that credit cards are then used to prop up a business of fill the gaps in the family finances.
This cycle leads to an ever spiraling debt problem, as more credit is needed to fund the credit taken and so it goes on. Every time a situation arises where there is no more money to pay any debts and that is when I get called in.
If you are a landscape gardener or any small tradesman, there will be three main solutions for you. If you have a decent income still coming in, then you may go for a debt management plan, which will stabilize your payments for a few months while you try to rebalance your finances.
If you know you are going to have a steady income for a long period of time, and you have large structural debt, then a 60 month IVA may be the solution that you need. You need to be cautious about this route as it is all to easy for your personal circumstances to change. However it is not so easy to change your IVA proposal and so you may find that you have paid many £ 000's to no end.
Finally, if you have little in the way of income or assets but a great deal of liability you may consider that bankruptcy is the way forward. Whatever solution you seek call 0808 160 5577 for free advice.