Despite earning only a fraction of what she used to, Polly Arrowsmith still lives a lavish lifestyle, and today we'll tell you why…
I was standing in the Dior store, thinking about this and that before deciding to buy a beautiful coat for £3,000.
5
Polly Arrowsmith went bankrupt and lost everything, and she still struggles with the urge to spend lavishly. Photo by Sonia Horsman
5
Katie Price appeared in court last week after being declared bankrupt for the second time. Credit: PA
This is a timeless classic and one I know will be loved for years to come.
It'll probably shock you to hear that I purchased this around this time last year, when I was still struggling to get a place to live after filing for bankruptcy in September 2020.
Up until then, I had been living an idyllic life since starting my own web hosting business in 2002.
For 15 years while my business was thriving I was earning up to £400,000 a year from salary, consultancy work and income from eight rental properties.
But just like Katie Price, who was first declared bankrupt in 2019, I couldn't help but keep spending money after losing everything.
Pals recently revealed that the 46-year-old former glamour model, who appeared in court last week after missing her second bankruptcy hearing, had splurged £7,000 in one go during a trip to Selfridges despite being in serious financial difficulty.
Since I went bankrupt four years ago, I've spent £20,000 on clothes alone, including a Dior coat I tried on in store and bought online, a Gucci jacket I bought for £1,880 and a pair of £600 trainers I bought in a Gucci store.
I also bought two identical Paco Rabanne dresses – a real bargain, reduced from £800 to £180 – plus lots of other stuff.
I bought a Missoni dress for £375, reduced from £1,750 in the sale.
4 ways you can pay off your debt
I also spend about £300 on skirts, £250 on shoes, £100 on tops and £30 on tights in Woolford. I'm rebuilding my work life and need to look good for the role.
I buy expensive gifts and bought a turntable for a close friend's birthday for £1,000.
I enjoy West End shows and fine dining, and I like champagne and oysters.
We are planning a holiday in Cornwall later this year and went to Lapland last Christmas.
5
Polly started the company and it grew to a turnover of £60 million before it all came crashing down. Photo: Sonia Horseman
From Cartier to Chanel
My life before bankruptcy could be said to have resembled that of an international celebrity.
In 2014, I spent a week in Barbados celebrating my sister's 50th birthday, flying around the world with no qualms about spending £10,000.
It was lovely to walk over to the Sandy Lane Hotel, a favourite haunt of celebrities like Simon Cowell, and sip cocktails overlooking the sea.
I knew I was lucky, but I worked hard for my money. Having possessions made me feel validated.
Polly Arrowsmith
On another occasion, I stayed at the Mark Hotel in New York, which gained notoriety in 2019 as the place where Meghan Markle held her baby shower.
I've done a lot of traveling, flying first and business class everywhere from Venezuela to New Zealand.
I had all the trappings of the rich, from a Cartier watch to six Chanel handbags. I still remember the joy I felt when I bought a Cartier Tank watch for £1,800 in 2004 and how successful I felt at the time.
My wardrobe was packed with £150,000 worth of clothes, I was a regular at Harvey Nichols and Selfridges, and I had sunglasses from Tiffany, Dior and Gucci.
I loved the excitement of being able to walk into a store with the security of knowing I could buy almost anything, and retail employees would recognize that and treat me accordingly.
It's not just the act of shopping that gives you a dopamine hit – when you get home, your purchase gives you great pleasure. It's addictive.
I could fill my supermarket cart with anything I wanted.
If I don't feel like cooking, I'll eat out. I enjoy entertaining friends and family, and I donate 10 percent of my income to charity. I feel blessed, and I want to share my joy.
I knew I was lucky, but I worked hard for my money. Having possessions gave me a sense of validation. It felt good to know that people would look at my watch and recognize that I was successful.
The roots of these feelings lie in my childhood.
When I was young, my mother was an alcoholic and often not at home, and I was bullied at school.
I had no pocket money, very few gifts, and got my first job at the age of 13 in a shop near my home in Yorkshire. None of my friends were working, and most of them were better off than us.
I remember my best friend got me a beautiful leather jacket for my birthday, and I loved that coat so much that I saved up my paycheck for weeks to buy the same one, feeling a huge sense of accomplishment.
I began to equate making money with buying beautiful things that made me feel like I belonged.
I studied business at university and worked in hospitality and retail during my holidays.
After leaving I worked in finance before setting up my own company which over 15 years had a turnover of £60m and 18 employees.
How it all unraveled is complicated, but the bottom line is that I was a personal guarantor for the business and was held liable when I couldn't repay the loan in 2017, and I lost the business.
In September 2020, after a three year struggle, I filed for bankruptcy.
I was £980,000 in debt and while I was battling it I kept spending money hoping for a dopamine hit.
I told a few friends and family about my bankruptcy but tried to hide it from most people because I was embarrassed.
5
Polly was evicted from her three-bedroom home with just 12 hours notice. Photo by Sonia Horsman
Part of my identity
My family was worried and advised me to stop spending so much.
But some items, like the Gucci sweatshirt I bought, have actually increased in value because they are limited edition.
Normally a bankruptcy lasts a year, but due to the pandemic and the complications of having to sell a property I bought to rent, it was extended until December 2023. I was hoping the property would cover the debt.
Sadly, they didn't and so in July 2022 I was evicted from my beautiful three bedroom home in North London with just 12 hours notice.
I remember rushing around to grab some of my favourite items and then sitting on the steps outside in complete shock and despair the morning the bailiffs came in.
I hit rock bottom, but it is only with the support of my family (my sister took me in), a psychiatrist, and medication that I am still here. I have considered suicide many times.
I was considered a failure and the massive success my business had enjoyed was deemed worthless.
I've lost my job, my home, and many of my most treasured possessions, so my reasons for buying expensive items are complicated.
I am 57 now and I understand that possessions and wealth are not everything and I have learned that I can be a loved person even without money, but it is hard to accept that my whole life has changed.
Being wealthy and owning designer items is part of my identity, and it's hard to let go of that, and I still enjoy the high I get from buying beautiful things.
5
Former glamour star Katie Price has experienced a sudden reversal of fortune. Photo: Getty
I think that's why Katie Price is struggling too – she went from enormous wealth to penniless.
We go over and over in our minds what we could have done differently, and we obsess over the things that made us feel good in the past.
And she's acting it out in public, which is even worse.
I am currently single and living in an apartment that was one of our rental properties, but I am fighting with the mortgage company and know I could lose that loan.
I am still on the hunt for bargains but I can’t borrow money because I don’t have a credit rating.
I work hard as a consultant and earn only a fraction of my previous salary, so I save up for special purchases.
I am resilient and I know I can bounce back.
I know some people will criticize me for still spending money, but I have complied with everything I am legally required to do.
Spending money and keeping a foot in the old world is helping me get through these difficult times and I always buy bargains.
I never judge people. There is such a stigma attached to bankruptcy, but it shouldn't be. Any little thing can put anyone in big financial trouble.
Right now I was in negotiations to sell my business for millions of dollars, and the next minute it was almost nothing, so now I'm enjoying what I have.
Narrated by Mel Fallowfield
Asking for Help: Don't Suffer in Silence
The first thing to do when you're faced with financial difficulties is to face them, says Jonathan Chesterman of debt support group Step Change.
The Debt Advice Policy Manager added: “Before committing to any solutions to deal with your debts, seek advice from a free and impartial debt advice provider like StepChange.
“Getting debt advice will help you assess your options and decide what the best course of action is in your particular situation.
“If there is little prospect of paying off your debts within a reasonable time frame, bankruptcy may be appropriate.
“But it could also be another type of settlement that involves writing off the debt, such as a debt forgiveness order or personal voluntary arrangement, or a plan to repay the debt at an affordable rate through a debt management plan.
“All these solutions have different requirements and vary from location to location.
“Most importantly, don't suffer in silence with your financial problems – free, non-judgemental help is available to help you get your finances and your life back on track.”
For more information, visit stepchange.org.
