Credit card write-off figures dropping.

Fall In The Number Of Credit Card Write-Offs

Bank of England figures show a total of £740m was written off in the third quarter of this year, quite a sharp fall and the lowest write-off amount since quarter one 2008.

This could be a glimmer of hope from people’s finances as this is significantly less than the record £2.1bn write-off in quarter two 2010. This mirrors a drop in personal insolvencies and home reposessions.

What are write-offs?

When it becomes clear to a bank that it’s customers cannot or will not repay money spent on their credit cards, a bank will normally write off the debt.

This amounts to around 10% of all outstanding lending on credit cards, and clearly displays the reason for the higher rate of interest on credit cards – a higher risk to the bank equals a higher interest rate.

What about Mortgages?

The amount of write-offs on mortgages also fell, although not as sharply as credit cards, from £184m in quarter-two 2010 to £134m in quarter-three.

Overall, across all forms of lending, write-offs have fallen from £3.5bn to £1.8bn.

Have a look at our other Credit cards calculators

Credit Card Calculator

Calculate the total cost of a credit card based upon the balance and the minimum payment made.

Credit Card Comparison Cal ...

Use Our Credit Card Comparison Calculator To Calculate Total Costs and Rate Changes with up to 3 ...

Debt Consolidation Calculator

How much can you save by taking out a single loan to cover all your existing credit card debt? C ...

More +

Have a look at our other Credit cards guides

All About Balance Transfers

How do balance transfers work? Can you save money with a balance transfer?

Save Money On Existing Cre ...

Can you save money without switching your credit card? Read our guide to find out the methods yo ...

Repay Your Credit Card or ...

Should you repay your credit card or put your extra cash into savings?

More +

Have a look at our other Credit cards news

Supercard Fee-Free Oversea ...

The travelling tech-savvy will love the new Supercard - A card with no foreign transaction fees ...

14 Jun '16

Fall In The Number Of Cred ...

Credit card write-off figures dropping.

29 Nov '10

More +

Disclaimer

By using this site, you agree we can set and use cookies. For more details of these cookies and how to disable them, see our cookie policy.

This site is designed to give you an understanding of financial products out in the wild, preparing you for proper professional advice.

We have provided guides, tools, a selection of deals (lowest rate and/or fees) but expect you to seek full professional advice with a whole of market adviser before making any decision.

Use the information provided at your own risk, we're not providing advice and errors can be made. Calculations made on the site are estimates, therefore in places assumptions or approximations may be used. We cannot accept responsibility nor are liable for any mistakes.

Please read our full disclaimer.

[28-19/03/2024-02:42:17-172.31.34.41]