As the battle for survival of credit card companies in the current economic times of a financial downturn gets fiercer, the firms are now looking to increase interest rates as well as introduce yearly fees. The current business model followed by these companies has been termed "unsustainable" with the rapid rise in bad debts and funding limitations, together with the toughest economic scenario which restricts growth.

Accountancy firm PricewaterhouseCoopers carried out an yearly analysis of the credit card market, named Precious Plastic, and predicted that times are difficult for credit card companies and they will be taking some very drastic measures to stabilize the condition.

After a study of the current market trends, experts have been quick to assert that in the coming years, credit card are bound to be "transformed from borrowing tools into payment ones". Also, in order to survive the current threatening times, the companies are bound to hike the interest rates and introduce an annual fee for each card.

With the expected moves, credit card companies will be going back to the basics. In the 90s, an annual fee for cards was common, but as the usage grew, more and more companies starting offering customers easier options. It seems that, in order to survive, credit card firms will have to take a cue from the times bygone.