Debt defaults exceed £1bn

Official figures from the Bank of England (BoE) have revealed that credit card debt write-offs exceeded £1bn during the final quarter of 2010, The Telegraph reports.

Banks wrote off a total of £1.18bn worth of credit card debt during the final three-month period of last year - up from £740m during the previous quarter. There was also a 22% rise in cancelled mortgage debts - with a total of £163m written off during Q4.

Banks wrote off a total of £9.71bn of secured and unsecured debt throughout 2010.

A spokesperson for debt management company Gregory Pennington commented: "We would advise anyone struggling to afford their debt repayments to seek professional advice as soon as they can.

"Addressing the problem early on can help the borrower regain control of their finances sooner, before they reach the stage where their debt might have to be written off - something which can have a serious impact on their credit rating."



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.