Re: up to a 20 per cent pay cut overnight... For many, the cost of their current mortgage
"Many contractors are ex-permies."
In my first contract (after being a permie for 7 years) I tended to act like a permie and came unstuck pretty badly.
Working as a contractor is a totally different mindset and associated risks. I finally figured out that the permie 'job security' was a myth (ok, that was easy to figure out). What took a little longer was that my job security as a contract wasn't my current contract, it was my ability to get a new contract when the current one goes up the swanny (project ends/money runs out/I get bored etc.).
Yes, the money is better, but your career becomes your own problem, along with your finances/taxes/skills-upkeep etc. etc. Also, try getting unemployment insurance on your mortgage if you are a contractor.