Credit cards are great as a 'just-in-case' measure. I'd hate to be stranded somewhere (particularly abroad) without any cash and with nobody to turn to for help. I have an Egg card that's still 0% on all purchases which I have for emergencies and then my Corporate American Express card for business travel, hotels, etc. That's more like a charge card, though, in that it has no credit limit and has to be paid off at the end of the month following the purchase.

The problem with a large proportion of card holders is that they see it is free cash and never pay it back. Credit card companies are as much to blame as the consumers, however; offering very low introductory offers and huge credit limits which aren't backed up by the earning potential to ever pay them back. Given the amount of unsecured borrowing and the current credit crunch, they're going to have to get tighter with the application criteria and the amount of credit they offer, or every Tom, Dick and Harry will be apllying for IVAs in th next few years.