The value of debts written off by UK banks shot up in 2009 from a total of £6.9 billion in 2008 to £9.3 billion in 2009.
The debts written off include £4.12 billion in credit card debt, up from £3.2 billion in 2008. The total of ‘other loans’ written off was up from £3.2 billion to £4.2 billion in 2009. The biggest jump was seen with mortgage debts written off more than doubling from £408 million in 2008 to £984 million in 2009.
The rest of the £4.12 billion debt write off includes £5.9 billion lent to non-financial businesses and £154 million lent to other financial corporations.
The main effect of these loses is felt by people who borrow and make repayments on time because the banks are simply increasing interest rates across all financial products. See our news from 22nd February; Credit Card Interest Rates Are Excessive
Craig Gedey, Marketing Manager at Debt Advisory Line said: ‘With interest rates are still at an all time low the banks continue to make their mortgage lending criteria more stringent than ever which makes it increasingly difficult for first time buyers get on the property ladder.’
‘The good news here is for people who may be coming towards the end of a fixed rate repayment period with their mortgage lender. Shopping around for a better mortgage deal could save hundreds of pounds in repayments.”
‘If you are stuggling to keep up with loan, credit card and even mortgage repayments Debt Advisory Line can help visit our web site www.debtadvisoryline.co.uk or call us Free on 0800 157 7254.’