I have a 16gb sdcard which freezes in my huawei u8160 or vodafone smart after using it for sometime. It works fine in other phones so I am wondering if the phone just cant handle sdcards that big?
16 GB is not "that big". All devices released within the past 2 years (which includes your device) at least support cards up to 32 GB. But every now and then, some incompatibilities are reported: A certain device doesn't like cards from a certain brand (I never remember the combinations causing trouble). It might well be you've hit one of those.
If you have some other card available, try that. If you either wanted to buy a new one, check the brand you're currently using, and buy some other. Good idea is to e.g. buy a 32 GB at Amazon (or some other place known to accept returns), so if it doesn't work out (and also seems to be "incompatible"), you can return it.