There is a grim inevitability about the rise in personal insolvencies. In 2010, over 135,000 people in England and Wales were overwhelmed by the debts and took the ignominious route of personal bankruptcy.
For banks, the personal lending business is a cruel numbers game. So long as the profits from personal loans comfortably exceed the losses from debt defaults, they are happy. However, for an individual, seduced by those adverts offering easy cash, insolvency is a personal disaster.