Sure if you meant the whole credit system causing problems for the business world, but I think you meant for individuals. I would have to completely disagree on the matter then, simply put you get to buy cool new **** you wouldn't be able to otherwise. For most middle class people (I say middle...
Ok let me ask you, what did you expect would happen if you changed banks? Or what did you want to happen? Because I think FNB requesting you settle the entire amount is pretty reasonable. That's just my 2 cents on this matter anyway. However you did say something about being penalised - I guess...