Mail on Sunday columnist Lauren Booth decided at the start of 2008 she could do without her credit cards, and in a symbolic gesture cut up all her plastic with the biggest pair of scissors she could find.

However, her attempt to live in the modern world without plastic back-up has proved a dismal failure, and also a salutary lesson on how only 42 years after their introduction into the UK, credit cards have become indispensible to many.

The first ever card that could be used in place of cash was the Diners Card launched in America in 1950, but it took another 16 years before the first credit card was introduced to the UK by Barclaycard. Just over 40 years on approximately £400billion is spent annually by UK credit card holders, and more of that amount each year is simply not being paid back.

But, the major reason why Booth failed on her mission to banish the plastic was due to the fact that many companies now base their business practices on the assumption that every adult has at least one credit card. If you attempt to do business with such companies without a credit card the whole system simply falls apart.

Indeed, the hotel and hospitality industry is a prime example as Booth found out to her cost on several occasions. During her stint as a non-credit card holder she and her family attempted to book into several hotels. At check-in the first question is normally ‘do you have a credit card we can swipe for extras?’ That standard practice is to prevent guests running up bills that they cannot subsequently meet, but if you are not in possession of a credit card it becomes complicated and usually involves the handing over a large cash deposit. It also means that you can’t use any of the hotel’s services that involve charging to your room, meaning Ms Booth was denied room service or the ability to use the bar and restaurant on a cashless basis.

But the problems encountered by Booth are not unique to hotels; try hiring a car without possession of a major credit card and just for added fun try doing it in the USA. You’ll be met with a look of incredulity and a more than fair chance that the person dealing with you won’t know how to continue with the hire procedure.

Indeed, it often pays to take two credit cards when travelling far from home, just in case there’s a problem with your preferred card. It is also worth carrying out your own credit card comparison for the country to which you are travelling. For example, although widely refused in the UK the American Express card is warmly welcomed in the USA, and some other countries are less keen on Mastercard than Visa.

Eventually, because of the problems encountered by Lauren Booth she gave in and reinstated her credit cards, and despite her best efforts her experience shows you simply can’t live without them in the 'Naughties'.