What would happen if everyone paid off their credit cards?

Paul Lewis, from Radio 4's Moneybox programme, has said that if everyone in the UK paid off their credit card debt then there would be a recession.

He said that if people were paying their bills it would mean that money was not being spent at the shops.

Earlier this week the prime minister rewrote part of his conference speech which appeared to call on households to pay off their credit card and store card bills.