The Government is planning a crack down on the credit card industry to reduce the temptation to get into debt.

Ministers are proposing legislation to stop credit card firms from raising the credit limit of a customer when this has not been requested. They also aim to ban firms from sending out unsolicited credit card cheques to consumers.

Credit card cheques, which usually carry more expensive charges than credit cards, are marketing gimmicks which are sent to customers, unsolicited. The consumer is then invited to use them for purchases or payments with a view to settle the amount on their next credit card bill.

These cheques generate a greater fee for the issuer and offers less protection to the consumer as items bought, which subsequently turn out to be faulty or the shop goes bust, will not be covered as they would normally be under a credit card purchase.

According to the BBC the outstanding balance owed on credit cards in Britain stands at £53 billion.

This measure, although long over due, will force many individuals into insolvency because in the past they have relied on credit cards to pay for day to day living expenses and in some cases to pay other creditors.

The credit card companies have invited this tough stance because of their failure to help the consumer in times of difficulty; instead of reducing interest rates in line with the Bank of England base rate they have increased them and then lowered the credit limit on the card.

Who's better off on a 0% credit card transfer? You or the credit card provider?

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