The amount of debt written off by banks and building societies reached a
record high during the final quarter of 2009. Iniduals and companies
defaulted on £6.1bn worth of mortgages and loans during the three months to
the end of December, the highest level since the Bank of England began
collecting figures in this format in 1993.
Lenders had to write off £205m of mortgage debt during the period, although
this was slightly down on defaults of £263m seen during the previous three
months. Bad debts on credit cards nearly halved to £894m, after soaring to
£1.57bn in the third quarter. But there was a strong increase in people
unable to keep up with other forms of borrowing, …
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