A banking giant is banning 160,000 debt-ridden customers from using their credit cards. They will receive letters in the next few days warning them their Egg credit cards will stop working in 35 days’ time.

It is the first time a credit card company has resorted to such a drastic move to curb over-spending, but others are expected to follow their lead as the global credit crunch tightens its squeeze on the beleaguered banking industry. If they do follow suit, it could lead to a crisis on the high street, because credit card spending has fuelled the “spend, not save” shopping culture.

Many adults rely on their credit cards to pay for a lifestyle that they cannot afford. Yesterday Egg said its dramatic move affects 7 per cent of its two million credit card customers. They are being targeted because they have a “higher than acceptable risk profile”, said the company.

This typically means they are spending over their credit limit or failing to make even minimum repayments every month. Now that’s the big problem and the main cause why their card was blocked!
[statistic from:dailymail.co.uk]