Credit card companies have seen the amount of money written off by banks significantly fall in the third quarter of the year.
According to the Bank of England, figures show that a total of £740m was wiped out, the lowest amount since 2008.
The fall is thought to be due to an improvement in individual’s finances as well as a drop in personal insolvencies and home repossessions this year however David Black from financial consultancy Defaqto thinks it’s more to do with stricter lending.
“It looks as if banks are benefiting from their decision a few years ago to be more careful about who they lend to, especially with unsecured lending,” he said.
Write-offs happen when large amounts of credit card bills aren’t able to be paid back by the card holder.
These write-offs then prompted lenders to increase interest rates or demand larger deposits for mortgages.
If you’re in a position where you need help to pay off your credit card bills, Money Advice Group offer a range of solutions which could help you create an affordable plan. From debt consolidation to a simple piece of debt advice, we can help.
