Would it be madness...

**NotAllThere** · 29 June 2016, 18:19

It's a risk. Only you can decided if it's worth it.

**jamesbrown** · 29 June 2016, 18:26

Definite risk, and your timing probably isn't great (although it's never perfect).

If you're looking for opinions from random contractors on t'interweb, I wouldn't do it until I had a decent warchest (6mo+). Of course, others have done it in your situation and been completely successful. As a minimum, I'd want something lined up, but that really counts for almost nothing in practice (welcome to contracting).

**northernladuk** · 29 June 2016, 18:38

Personally, based on the little information supplied, I'd say yes it's madness.

Your first gig is easy to get. You just sit there applying and applying until you get something. Now your first risk pops up. It's not unheard of for a gig to evaporate while they wait for your notice period meaning you could potentially be out of work for a couple of months.
While you are in that gig you need to be taking as little as possible to get a warchest together ready for the second gig search which is the hardest. The fact you've got debts like that means you aren't going to be able to save much so again facing many months on the bench with no income.
Your second gig is hardest because you are still a newbie so potential risk and many experienced guys ahead of you. How long can you afford to be searching for with no income and no warchest with debts like that? And then there is the gap after the second gig etc.

So you take the risk and it goes wrong, you can't pay your debts and don't make your payments on your debt. That then means no financial and possibly security client will take you on so you've chopped a fairly big percentage of your target work so making it even harder and so it spirals.

Jumping with no war chest is very risky. Jumping with no warchest and debts that potentially means you then won't be able to work for half the clients out there is potentially suicide IMO.

We haven't even gone in to why you've got those debts and the lifestyle problems etc.

I'd say get your house in order first to reduce the risk and then have a go.

**Kraut** · 29 June 2016, 19:09

Originally posted by JumpIntoTheVoid View Post

the other thinks that the debt could be cleared (or at least severely dented) in a matter of months instead of years if I did.

Or you could quickly rack up even more debt. northernladuk is absolutely right in my opinion as far as difficulty in finding gigs is concerned. It gets easier with practice (that is with every gig after the second) and a growing warchest. Being desperate (out of money, in urgent need of gig) is what will trip you up -- you need confidence and the ability to shrug off failed pitches/interviews, or gigs that don't materialise. Both takes a hit when there's no money to see you through the next months.

Also, as for the existing debt: Once you start as a contractor, nobody will lend you any more money (in the undesirable case that you need more) for the next year or two. As a starting contractor, you really are on your own for a while. (Of course you could always try to return to permanent employment, but then you're back at square one, likely with more debts than before.)

**NotAllThere** · 29 June 2016, 19:10

When I started contracting the idea of a warchest wasn't around. Fewer contractors, more work... kind of nice.

**northernladuk** · 29 June 2016, 19:14

Originally posted by NotAllThere View Post

When I started contracting the idea of a warchest wasn't around. Fewer contractors, more work... kind of nice.

I imaging the rates were better as well. Those days are long gone.

**SueEllen** · 29 June 2016, 19:26

Yep.

Unless you have:
1. A partner who can and will support you, and,
2. Skills of high value, and,
3. A good network

You are better of looking for a permanent job where you will earn more and put the salary increase into paying off your debts. If there are no jobs around where you can earn more money then you need to think about your skillset.

**yMyjgT** · 29 June 2016, 21:02

Originally posted by JumpIntoTheVoid View Post

Would it be madness to make the jump from permanent employment to contracting without a 'war chest' / savings fund.

It would be mad if clearing that £10k debt was your only reason to do it.
If you had zero debt and £10k in your bank account, would you make the switch?

I switched with zero savings behind me, and no other household income. My first contract was lined up, and arranged by an agent I already knew and trusted, at a place that was reliable and also trustworthy (relatively speaking) i.e. there was as little risk as there gets that anything would go wrong.
Handed notice and that was that. Yes, it could have all gone badly wrong, but you weigh up the risk and decide what to do.

I think you need to decide how risky it is, and just make a call on if you're willing to go for it or not, but do it for the right reasons.
If you're confident the first one will be reliable, and has a low chance of binning you off before it ends, and that it will last long enough to build up a warchest to tide you over when it ends for a reasonable amount of time for your skills to get another contract in your industry, then you might want to go for it.
If you think the client is risky, and regularly ditches contractors, etc, then be far more cautious.

**JumpIntoTheVoid** · 29 June 2016, 21:36

Hmmm... this is tough. Ive added up and it more like £15k. Its not the only reason for doing it.. but Id be lying if I said it wasnt a huge part of it. I dont have a partner to support me if things went pear shaped.

And would I do it if I had £15k in the bank... maybe not. Its a good day rate and I could be debt free in less than a year.. but I could also be committing suicide too...

Would it be madness...