From `Budgie the Helicopter' to budgeting, Sarah Ferguson was once flying high. But now she's come down to earth with a bump.
Sarah Ferguson is said to be in millions of pounds worth of debt and possibly on the verge of bankruptcy. It’s a frightening situation for the Duchess, given her lifestyle as writer, charity worker and film-maker, as well as one of the better-known Royals.
But according to a recent article in the Daily Mail, Sarah is not the only person with royal connections to have considered bankruptcy. Prince Alfred, the younger son of Queen Victoria, also had debts and had to be helped out by his brother, Edward in the 1890s.
No doubt, just like Alfred, Sarah will be exploring all of her options before she makes a decision, as bankruptcy is normally the last resort.
Debt can affect people from all walks of life - from the unemployed to royalty it seems! So it just goes to show that you don’t have to be on the poverty line to be considering bankruptcy as a solution.
Going bankrupt is definitely not the easiest decision to make, but if there are no other options it can be the quickest way to clear your debts.
One every 51 seconds
There is an undoubtedly a stigma attached to bankruptcy, and people are scared of the consequences, but it can be the best way forward in certain circumstances. At the moment 391 people go bankrupt every day, one every 51 seconds, the highest on record.
In 2009, CCCS counselled nearly 40,000 clients whose total household income was more than the national median pay of £25,000. Over 2,000 of these earned more than 90% of the UK population, or over double the national median income. Bankruptcy was advised in 5.9% of cases for these clients; it doesn't just happen to those with low earnings and CCCS always encourages people to get in touch with us regarding debt advice no matter what they earn.
People often think that bankruptcy is their only option once they are on the slippery slope of problem debt. However, there are usually other options that they can consider first.
Seek advice
If you are considering bankruptcy or struggling with a debt problem CCCS can help. If you would like to talk through your options with one of our trained counsellors you can call our free helpline on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.
Alternatively you can visit our online debt advice facility called CCCS Debt Remedy. CCCS Debt Remedy will assist you in completing a financial statement and you will be provided with tailored advice on the best way to deal with your situation.