barclaycard put block on customers taking cash advance

According to the Daily Mail (http://www.dailymail.co.uk) the credit crunch could soon be much more widespread. Barclaycard have announced that it’s blocking some customer’s ability to withdraw cash on it’s credit cards. The reasons stated by Barclaycard were that it showed signs of financial distress. The news follows the shock of 160,000 Egg customers who received letters telling them that their credit card/s were being withdrawn from them. Is this a sign of things to come?

With increased Utility cost’s, higher food bills and below-infaltion pay rises, one could only persume that 2008 really will be a year to stop relying on Credit. Although, to date, none have taken the drastic action like Citigroup (new owners of Egg), we are all being warned not to rely on Credit as a means to live.

This could be easier said than done for many, many people have enjoyed the luxury of easy credit in the past years. Who’s to blame? Was Credit given to easily?

Citizen advice have already quoted that demand for their services have increased in 2007.  One could only imagine that in the coming months, Citizen advice will receive even more calls!