Consumers' enthusiasm for credit cards is showing signs of waning but for many people this new-found prudence is likely to have come too late.

Borrowing through credit cards has fallen by 3% during the past year to £64 billion, while the number of cards in circulation has dropped by 8% back to levels last seen in 2003, according to a report by PricewaterhouseCooper (PcW).

Not only are people borrowing less on their credit cards but they are also using them less too.

Figures from the UK Cards Association show that spending on debit cards jumped by 9% during 2008, but credit card spending dived by 27% during the same period.

PwC claims the drop in card usage is being driven by a combination of lenders reducing the availability of credit, while consumers are also less willing to take on more debt.

But many people have already taken on such high levels of debt on their plastic, that even once they have put the brakes on new spending, they are still struggling to pay back what they owe.

Credit card repayments have outstripped new spending every month since early 2006, according to the British Bankers' Association.

But despite this, outstanding plastic debt has continued to rise nearly every month during the period, due to the impact of interest and charges on the money owed.

The amount owed per card rose by 5% during the past year to break through the £1,000 barrier for the first time.

Unsurprisingly, given the current economic backdrop and rising levels of unemployment, PwC is forecasting an increase in credit card write-offs from £3.2 billion or 5.8% of outstanding balances in 2008 to a record 9% by 2010, unless lenders take action.

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