By SamFleming Last updated at 8:04 AM on 25th June 2010
Families aredrowning in debt after a decade-long binge on credit cards. The Bank ofEngland today warns lenders are writing off record quantities of credit cardborrowings as thousands of individuals spiral into insolvency. Lendersare responding by pushing up interest rates even higher, putting more familiesin financial trouble, the Bank said in its Financial Stability Report. The findings are backed up by separate research which today warns of alooming ‘insolvency crisis’in the UK. A record 146,948 Britons will bemade insolvent in England and Wales this year, up 10 per cent on 2009, accordingto a ComRes survey for insolvency practitioners group R3. Steven Law,president of R3, said: ‘We stand on the brink of a personal insolvency crisisthat will take years to work through the system. ‘We know there arenearly a million people out there who are struggling with their debt. ‘While it may be the case that these problems are resolved without help,there is a risk that they might snowball out of control.’ Britain is nowby some measures the most indebted country in the world, the coalition’s Budgetsaid this week.