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The wealth of information on this site is available in a handy-sized book. Buy it from your bookseller, or online here.

ISBN 978-1-906439-21-7




Consumer debt is rising...

Several major banks and credit card companies have recently reported increasing levels of bad debt. UK personal debts total more than £1 trillion. The banks are often accused of being 'too cavalier' in their lending, taking too little account of the financial circumstances of those to whom they offer overdrafts and credit cards. Part of the problem lies in the extortionate rates of interests charged on credit cards and especially on store cards. As long as enough people pay interest at these levels, the card company can afford to write off a reasonable number of bad debts. (Card companies and banks usually sell these debts at a discount to debt collection agencies, who then pursue the defaulters. Any debts still uncollected will be sold on again. The card company has got the debt of its books, but the debtor is still being hounded.)

There is an argument for limiting the interest rates that banks and card companies are allowed to charge, because if it wasn't so profitable they might be more careful about lending. What do you think? Read our section on borrowing, and send us your views.


  9 October, 2008 © 2008 K.R.Wade and Co Ltd prev page next page