Debt write-offs by banks `at record levels`

Banks have been forced to write off record amounts of credit card debt because people are unable to repay what they owe, new figures show.

The Bank of England found that credit card debt write-offs reached £2.1bn in the second quarter of 2010, compared with £1.3bn in the first quarter.

Last year, £4.1bn of credit card debt was written off by lenders - a record at the time - but this total has almost been reached in the first half of this year alone.

The findings come despite reports that debt charities are receiving fewer calls from struggling borrowers.

An expert at debt management company Gregory Pennington said: "Debt is still a huge problem for many people in the UK, but in many cases the measures that involve debt write-off, such as bankruptcy, could have been avoided if the borrower had sought help earlier.

"It`s essential that anyone struggling with debt seeks help as soon as they realise a problem exists. The earlier the problem is tackled, the less likely it is to develop into something unmanageable."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.