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Credit Action Debt Stats Banks Write Off £9.6Bn Of Loans

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Credit Action Debt Stats July 2010

And it will get much worse.

Total UK personal debt

UK banks and building societies wrote off £9.6bn of loans to individuals in the last 12 months to end Q1 2010. In Q1 2010 they wrote off £2.13bn (£1.25bn of that was credit card debt). This amounts to a write-off of £23.35m a day.

Total UK personal debt at the end of May 2010 stood at £1,460bn. The twelve-month growth increased to 0.9%. Individuals owe more than what the whole country produces in a year.

Total lending in May 2010 rose by £1.5bn; secured lending increased by £1.2bn in the month; consumer credit lending increased by £0.3bn (total lending in Jan 2008 grew by £8.4bn).

Total secured lending on dwellings at the end of May 2010 stood at £1,241bn. The twelve-month growth rate rose to 1.1%.

Total consumer credit lending to individuals at the end of May 2010 was £220bn. The annual growth rate of consumer credit rose by 0.1% to 0.0%.

Average household debt in the UK is ~ £8,716 (excluding mortgages). This figure increases to £18,159 if the average is based on the number of households who actually have some form of unsecured loan.

Average household debt in the UK is ~ £57,944 (including mortgages).

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Any long term figures for comparison on write-offs?

Wonder what they were like in the 90s.

IIRC on this Forum around 2005 it was discussed in a thread that UK Lenders were expected to write off £22 billion that year. Credit Actions stats can be viewed back to January 2005 and you will find the same old story of people having trouble managing their debts.

In the last 15 years I would calculate that there were 1 million personal bankruptcies, this year they expect 150,000 personal bankruptcies.

Forget Government debt when £1.4 trillion is owed by personal borrowing.

This Governments Economic Policies will cause a bloodbath which has never been seen before in this country and it will be frightening.

My rough calculations casually observing these write offs over this decade I would say the total write offs must be around £100 billion.

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There is alot of debt that isn't being written off - instead the debtor gets to pay at a token rate. Sums typically vary between £10k and £50k. No idea where to get overall figures on this, but the CAB helps many people strike these deals with lenders. CAB gets 9500 new queries per day.

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There is alot of debt that isn't being written off - instead the debtor gets to pay at a token rate. Sums typically vary between £10k and £50k. No idea where to get overall figures on this, but the CAB helps many people strike these deals with lenders. CAB gets 9500 new queries per day.

This raises a query - credit card debts are normally "charged off" ie, sold as bad debts to debt collections companies for a certain percentage of the outstanding amount.

Can anyone tell me whether the 1.2bn of credit card debt that was written off in Q1 2010 was the gross write off figure or the net figure after selling the debt on. Just curious. And I assume the figure does refer to debts which have been charged off, not simply where the account has defaulted? Anyone help with this?

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This raises a query - credit card debts are normally "charged off" ie, sold as bad debts to debt collections companies for a certain percentage of the outstanding amount.

Can anyone tell me whether the 1.2bn of credit card debt that was written off in Q1 2010 was the gross write off figure or the net figure after selling the debt on. Just curious. And I assume the figure does refer to debts which have been charged off, not simply where the account has defaulted? Anyone help with this?

It would have to have actually been written off completely, not sold on.

If it was sold on the then instead of the debt being "written off" assets would have been "written down". The difference is one ends the debt, the other just reflects the lower chance of it being repaid...

Unless they simply lied about what they did.

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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