Friday 9th of October 2009
Individual voluntary arrangement (IVA) advice could have saved Louise Walker from financial turmoil after her spending habits eventually caught up on her.
The 60-year-old ex-costume designer estimates she has splashed out at least half a million pounds on clothes in her life, the Daily Mail reports.
And her obsession with credit cards resulted in break-ups with three partners and the loss of a 12-bedroom mansion in the Cotswolds.
But when her income reduced and she was forced to sell her house she dropped to her most vulnerable financial position yet.
Mrs Walker, talking about her third divorce, tells the Daily Mail: "In court, as we thrashed out our settlement, my husband said I was profligate. I was outraged, even when his accountant pointed out that I’d spent £8,000 on a single shopping trip."
She believes she was addicted to shopping and often ran up huge credit card bills - which an IVA could have helped her to pay off.
IVA advice, which can only be applied to unsecured debts like Mrs Walker’s, could allow a cash-crazed consumer to start repaying what they owe in manageable monthly portions.
By Rachel Powell
- 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
- IVAs could offset pay freeze disappointment
