Leading figures, within the loans industry, claim that so called bad loans are bound to increase as the recession takes hold.

Barclays and Lloyds have looked at their figures and offering a grim assessment of the possible future heading for many Britons and the economy.

A Barclays spokesperson stated, "During the rest of the year, we expect the loan loss rate to increase further across all business lines and the rate of increase across our international books to be higher than our UK books."