Credit Card Bad Debts on the Increase

There has been a huge rise in the amount of money that banks are writing off as bad debts on their credit cards.

Bank of England figures show that the total value of the write-offs doubled to £1.6bn in the third quarter of 2009.

In each of the two preceding quarters, the figure had been about £800m. It totalled £3.2bn during 2008.

The figures reflect the impact of the recession and are an acknowledgement by the banks that the money will never be repaid by defaulting borrowers.

By contrast, the value of mortgages written off in 2008 was just £408m, and has averaged £260m in each of the first three quarters of 2009.

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Posted by credit4everyone on Jan 19 2010 Filed under Money Saving & News, Our Guides. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry