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Analyst raises fears of "next credit crunch"
Credit cards could prove to be the "next credit crunch" - leading to more people falling into debt and having to seek out debt consolidation plans.
This is the subject of new analysis from top US financial expert Meredith Whitney.
Writing in the Wall Street Journal, the analyst said that more and more card firms were shutting off credit lines and refusing applications from customers who they consider risky to lend to.
This conservative attitude has been caused by the credit crunch, which has led to big revenue concerns at the card providers.
However, Ms Whitney suggested that much of the economic growth enjoyed prior to the onset of the crisis was driven by easy credit criteria from these firms.
This means that the card refusals has the potential to make the current downturn much worse - and even cause the "next credit crunch".
Card providers are "taking credit away from people who have the ability to pay their bills", Ms Whitney added.
Figures from Credit Action released last week showed that the typical UK household owes around £10,000 in unsecured debts.