Figures from the Bank of England show that write-offs rose to £1.25bn in the first three months of 2010.

That was the second-highest quarterly amount on record.

Last year, a record £4.12bn was written off by credit card lenders, amounting to about 10% of all money lent on credit cards.

The amount of money written off on mortgages fell to £160m, the lowest quarterly figure for 18 months, as house prices rose again and the number of homes being repossessed fell back.

The number of repossessions the UK fell by 7.5% in the first three months of 2010, from 10,600 in the last three months of 2009 to 9,800.

The Bank of England said in its latest Financial Stability Report that losses on credit card lending had been a prime factor in driving up the interest rate margin charged on them.

Its statistics show that the average UK credit card rate was 16.51% in April this year, slightly higher than in July 2007 when it was 15.2%.

But in that time bank rate has fallen from 5.75% to just 0.5%, where it has been since March 2009, giving the card companies a much larger cushion.

How does it work?
Only few steps – add your Indian bank account to your PayPal account in order to conveniently withdraw your money.

Login to your PayPal account.
Click the ‘Profile’ subtab on the Account Overview page.
Click the ‘Bank Accounts’ link in the Financial Information column.
Click Add.
Fill out the Add Bank Account form.
Click ‘Add Bank Account’.
You are now able to withdraw funds from your PayPal account to this bank account

Which bank can I use to withdraw my money?
State Bank of India , Bank of India, Canara Bank, Union Bank of India, HDFC Bank, ICICI Bank, ING VYSYA Bank, UTI Bank, Standard Chartered Bank, HSBC, Citibank are the participating banks.

How much does it cost?

For withdrawal amounts of more than 7,000 Rupees are free. For withdrawal amounts of less then 7,000 Rupees, there will be a fee of 50 Rupees

How long does it take to receive funds to reach my bank account?

It takes 5-7 business days, but may take more time, depending on your bank’s policies.

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