Debt is on the rise in the UK and many banks around the world are preparing for a similar decline in other Western markets like the United States. Mortgage problems that began in the United States have quickly extended into the UK and other markets, which has switched much of the spending from home equity to credit cards. The result has been a huge increase in the amount of credit card debt outstanding and (thanks to the mortgage crisis) a rising number of defaults. This is a trend that is only continuing to get worse both domestically and around the world.

From TimesOnline:
Debt charities are gearing up for the busiest January on record as the financial hangover from an expensive Christmas kicks in. The Consumer Credit Counselling Service and Credit Action, two leading debt charities, predicted that they would receive more calls from borrowers worried about their finances this January than in previous years. The credit crunch, coupled with five interest-rate rises, has left tens of thousands of borrowers struggling. It was hoped that the 0.25 per cent cut in the interest rate at the beginning of the month would ease the burden on homeowners, but many mortgage lenders have yet to pass it on. In addition, shoppers have spent an estimated £34 billion on their credit cards this month, up from £31 billion last December, according to the Association of Payment Clearing Services, the credit card industry body.