Latest Debt News
Bad debt booming
10/03/2006 17:53:00
The first rise in bad debt in 15 years has occurred this year with seven per cent more people appearing in court over debt problems.
After a fifteen-year decline in bad debt the number of country court judgements (CCJs) has risen by over 500,000 appearances, according to annual statistics from the Registry Trust.
The figures have been attributed to an increase in bad debt gained from the overuse of credit cards and also a crackdown by financial institutions on getting rid of harmful bad debt.
Malcolm Hurlston, chairman of the Registry Trust, said: "The rise in CCJs provides further evidence of difficulties in the personal lending sector.
"It shows that lenders are increasingly prepared to use the courts to recover bad debts which places the CCJ as a key element of a healthy, responsible credit industry."
British citizens currently have the highest level of personal debt in Europe. This has been blamed on an ethos of personal debt being accepted as the norm.
Many financial institutions have started adopting a more hard line approach when it comes to bad debt as it is becoming a growing problem for bank balance sheets.
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