Oh Dear: Consumers hit by credit squeeze as debt spirals

[milanbenes]

http://business.timesonline.co.uk/to...cle1431936.ece

'High street banks are preparing to write off an unprecedented £6.6 billion as Britons default on a record amount of personal loans and credit card debt.

Rising interest rates and higher Council Tax and utility bills are taking their toll. Struggling borrowers who could previously find a fresh source of credit to tide them over are finding supplies cut off as banks tighten their lending criteria.
',




ooops

Milan.

[Troll]

If they write it off does that excuse the debtor? or is it only the projected money that the loan should have made they are writing off?

[wendigo100]

Someone, somewhere has to pay for bad debts, and it is usually the mugs who look after their money properly.

In these cases, it will come out of bank profits, which affects the bank's dividends and share price, which affects pension funds.

[milanbenes]

question is would they make so much profit if they didn't have so much risk ?

but where does the money come from anyway ?

answers on a postcard please

Milan.