Standard & Poor’s estimates that UK consumer credit, which has grown by 10 per cent annually, now stands at £200 billion, and is unsustainable. Were interest rates to rise banks would quickly face £30 billion in losses. The Financial Times this morning reports that in the first 9 months of this year court judgements related to the recovery of personal loans, hit 910,345, up 34 per cent from the previous year and higher than the 827,000 in the whole of 2008. BBC Radio 4 today also reports an increased, and possibly excessive, use of bailiffs to retrieve debts owed to local councils.
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