The debt management problems of many credit card customers looks set to continue, according to a leading accountancy firm.

PricewaterhouseCoopers (PWC) published a report that predicts that “bad debts” will make up as much as 9 per cent of all outstanding credit card debts by the end of 2010.

The number of bad debts are at historic levels of around 6 per cent, despite credit card borrowing falling by 3 per cent to £64bn.

Credit card companies have also seen the number of cards in circulation fall by 8 per cent too, causing card companies to consider other revenue streams.

Experts predict that the re-introduction of annual fees may occur and higher interest rates charged, as firms try to recoup lost money from falling incomes and tighter legislation.

PWC claim that this could result in firms targetting wealthier customers, as they return to the days when borrowers were required to have a high income to get a card.

Richard Thompson, a partner at PWC, said: “Lenders will focus on [customers] that are the most profitable, rather than those that are in the most need of credit.

“At the higher end of the market customers will pay for access to premium benefits and at the lower end more marginal customers will be expected to pay for even a standard credit card.”

Ivan Cooper, Chairman at leading debt advice organisation Chiltern, said: “According to the report by PWC, the average household will need to spend approximately 15% of its income after costs and taxes just to service the interest payments on their credit card debts.

“This places a huge pressure on already fragile finances, and could see many households developing debt problems as they struggle to maintain their payments.”