Banks write off £3.5 billion of debt as borrowers fail to meet repayments

Around £40 million of debt was written off by banks between April and June totalling £3.5 billion, according to figures revealed by the Bank of England. Credit card debt was the biggest area affected - £2.1 billion was written off, up from £1.3 billion in the first quarter of the year. About £1.2 billion was written off from personal loans, hire purchase agreements and overdrafts. A much lower figure of £184 million came from toxic mortgages.