Debt and Being a director during Pandemic

Debt and being a director during the pandemic places considerable strain on SME directors.

In addition to remaining concerned about their own finances and safety of their own family and friends. They also have the added worry of their business and members of their team they employ.

Health and safety have never so at the front of people’s minds. Individuals are social animals. Being in lockdown has a major impact on people’s finances, but more importantly, mental and physical health. The UK, along with many other countries in the Northern hemisphere, have entered earlier nights, adding to the problems.

Individual safety relies heavily on the satisfaction of:

  • Psychological;
  • Physical;
  • Social and;
  • Existential requirements.

These requirements may impact your health. Therefore, your health and safety remain two-sided. They individually remain essential toward individuals maintaining their own perceived value of their own well-being and dignity.

Factors which have in the past had a positive impact on health physically have been:

  • a healthy lifestyle,
  • Feeling comfortable in their own home environment;
  • knowing support from the UK Government remains at hand;
  • outside debt advice at hand.

The four points raised have proven to be considered in the minds of individuals, improving and maintaining individuals’ health physically.

Therefore, when even one of the above undulates and starts to vary, then matters escalate rapidly. Events that may impact during the Coronavirus COVID19 Pandemic and beyond may be:

  • Unemployment,
  • Bankruptcy,
  • Illness,
  • Disability,
  • Divorce or
  • Loss of home and assets,

Any one or more may trigger the start by releasing underlying issues exposed due to pressure. A direct correlation is evident, affecting mental feelings affecting your health. At this point, DEBT plays a potentially major role. One which many fail to cope with and require professional support to stem the spiralling decline.

Many types of individuals remain then at threat:

  • Low-income families;
  • The elderly;
  • Existing individuals already in the poverty sector;
  • New migrants;

Debt and Being a director during Pandemic – Debt taking control

At this point, DEBT starts to take control. It may affect decision-making generally. Both business and household finances become unmanageable. Robbing Peter to Pay Paul starts. Therefore, debt begets debt. Missed payments cause problems with credit ratings, then introduce individuals to high-interest charges to resolve the growing cash shortages experienced. And so it goes on. Does light exist at the end of the tunnel?

So the individual now experiences mental health issues. Are they aware they are? If not, what impact remains on decision-making?

Debt can be directly linked to not being able to deal with important decisions. A feeling of low esteem sets in. Clinical depression presents itself in many ways, affecting how individuals feel moving forward, perhaps in a negative way. Perhaps a feeling of “We are all DOOMED”. Anxiety may also cause financial further issues along the line.

So how can debt and health generally be improved? Seek immediate help from recognised services. Keep talking, and realise help is at hand.

For contact details:

If you are feeling suicidal, contact Samaritans on 116 123

Insolvency Practitioners Association

Company Debt Advice

HMRC Support for Contractors during Pandemic

Debt support at Mind  on 0300 123 3393

Citizens Advice help with debt and money


Contacting HBG Advisory and The Team at HBG Advisory.

Finally, remain safe, everyone. If you know anyone suffering, please keep in contact with them extending a helping hand.

Immediately stops all creditor legal action
Supporting directors though Insolvency
The business does not cease trading