Bad debts in the credit card sector have reached historic highs according to PwC. They may reach as much as 9% of all outstanding balances by the end of next year reports the BBC. Currently the figure stands at about 6%.

PwC has this to say by way of introduction to its Precious Plastic 2010 report:

2009 has been a watershed year for consumer credit in the UK, with both lenders and borrowers reassessing their balance sheets. Historically high levels of bad debt, a growing regulatory burden, continuing funding and capital constraints and the toughest macro-economic environment in a generation are placing unprecedented pressure on UK lenders.  As a result, consumers will face a reduction in the availability of credit and an increase in its cost.

Can we expect to see last weeks throw-away fashion items worn the next week in future?

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