Tuesday 30th of June 2009
A secretary in her 20s declared herself bankrupt after racking up debts of £22,000, it has been reported, although she first turned to the option of seeking individual voluntary arrangement (IVA) advice.
Laurie Smith, 22, overspent on credit cards and took out several loans in order to fund her love of holidays, shoes and clothes, the Sun noted.
She told the newspaper that after taking out her first loan she soon took out five more. But she was fired from her job in 2007 and had to take out an IVA.
However, with no income coming in, Ms Smith could not keep up with her IVA repayments and instead declared herself bankrupt.
"I came out of bankruptcy this April and now I am working as a secretary again. Every week, I pay my bills and deposit £25 in my savings account," she told the publication.
Obtaining IVA help could be more preferable than going bankrupt, which can cost an individual hundreds of pounds in official fees.
Younger Britons may be particularly in need of IVA advice, after Samantha Nurse of Citizens Advice, told the BBC that a growing number of people under the age of 30 are funding a celebrity lifestyle with loans and credit cards.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA questions may cut out stifling credit burden
