Latest Debt News
Bankruptcy not the best option
21/11/2005 17:10:00
The large increase in the number of people declaring bankruptcies has been attributed to the change in the law last year that made the process less damaging.
But Rebecca Taylor, a 32-year-old office manager living in Manchester who resorted to bankruptcy, has warned that even if it may be an easier option than it used to be, its consequences are still harmful.
During her time at university, and through the start of her working life, Ms Taylor saw her debts soar to £28,000, largely on credit cards and overdrafts.
She explained: "After the interest repayment levels rose on my credit cards and overdrafts last year, I reached a situation early in 2005, when they were at an all time high, where I could not physically maintain my monthly payments.
"I felt I would never be able to escape this mountain of debt any other way."
However, in the long-term, she will suffer due to the bankruptcy: "My credit rating is obviously damaged, and in the future, to gain credit I will probably have to pay much higher rates and may be limited as to which banks I can gain credit with."
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