The professions most likely to fall into debt
Anyone, regardless of their job, years of experience, age or financial situation can fall into debt. This can be the result of a whole host of factors such as difficult personal circumstances, business deals gone bad, irresponsible lending on behalf of banks and more.
Having said this, not all professions are created equal. The same way in which choosing a certain career path or profession will give you a greater chance of earning more money, some careers also come with an increased likelihood of falling into debt. Read on to find out which ones they are and why this is the case.
Property developers are at increased risk of falling into debt due to the volatility of the housing market. Making a large investment in a property before renovating it can leave you in debt. Debt that you may have initially thought you could repay by selling the newly renovated home.
However, a stagnant housing market and rising property prices could result in you not being able to achieve the sale price you wanted. Leaving you in debt with a property you’re unable to sell or the prospect of selling at a reduced price and making a loss.
Running your own bar is a dream for some, but it’s an extremely risky operation. Generational drinking trends mean that an eye-watering 12 pubs an hour are closing down in the UK, despite years of beer tax cuts. This means that the customer base for pubs is dwindling every year. Although, there are also a host of other factors which make falling into debt a strong possibility for pub landlords.
Large electricity and heating bills are required to keep pubs running. Other bills include large payments for rent, alcohol, and refrigeration. Many pubs also have their own kitchens, which also rack up large energy bills. The result of this is that a bad month of business can be devastating to bar owners, due to the consistently high bills. Making the risk of them falling into debt relatively high.
Another job that poses a high probability of falling into debt is fleet managers. These professionals depend upon their drivers and cars working as efficiently as possible in order to make money, but this sadly isn’t always the case.
Unexpected accidents can cost fleet managers tens of thousands of pounds in repair bills and suddenly leave them facing huge debts. Whereas, problems such as fuel theft and inefficient driving styles can slowly drain a fleet manager’s profits until they become losses.
If you fall into debt through your job then the answer isn’t always bankruptcy. Sometimes a settlement can be made with the debtor that could shave hundreds of thousands of pounds off your bill.
Call 0330 159 5820 to speak to one of our specialised debt strategists.
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