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    The Bank of England has warned the City needs to learn lessons from the problems which caused this summer’s credit crunch or risk it happening again.

    It launched a scathing critique of the financial sector, claiming it had expanded lending too rapidly and expressed concern sub-prime mortgage borrowers were still vulnerable.

    The Bank’s deputy governor Sir John Gieve said: "There have been signs of recovery in recent weeks but some markets are still illiquid and the financial system remains vulnerable to further shocks."

    For borrowers who struggled during the last credit crunch, now could be a good time to seek help becoming debt free.

    Debtors seeking advice from an insolvency practitioner can look at alternatives to bankruptcy such as individual voluntary arrangements (IVAs).

    An IVA is a court-approved system of affordable monthly repayments, meaning borrowers could be cushioned from further disruptions within the global market.

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