Self employed people should avoid mixing business and personal finances.

The Consumer Credit Counselling Service (CCCS) has provided advice that people who have started a recruitment company may want to take note of to avoid messing up their finances.

Concerns regarding the self employed and debt were raised by the organisation, which suggested that some people were getting in trouble because of blurring the lines between personal and business finances.

A spokesperson of the CCCS explained that self employed people can easily find themselves mixing company and personal investments.

"Some may take out loans and credit cards to support their businesses during tough times, or use the same bank account for both business transactions and their personal day-to-day spending," she said.

"This means that problems in one area can then spill into the other more easily."

Her views were expressed in the wake of revelations from Kensington Mortgages that 1.2 million people became their own bosses in the last 24 months despite the economy contracting for six consecutive quarters.