Credit card spending limits cut

12/04/2008

Credit card companies are trying to reduce their customers spending limits by £3.1 billion.

MoneyExpert.com estimated 1.8 million UK credit card customers to have had their credit limits reduced throughout the last 6 months.

Cardholders are struggling with their credit cards and other debts; they are finding it difficult to repay what has been borrowed. Furthermore, the price comparison website feels that situations are happen to get worse.

Sean Gardner of MoneyExpert.com commented: "The credit card market is very competitive as people turn to interest free deals to tide them over some tough economic conditions.

"The warning lights should be shining brightly, however, if you find you’re going from card to card without making a dent in the amount you owe. If you don’t have a repayment plan in place it is time to get one."

Over 980,000 cardholders switch credit card providers each month; most users are searching for the best credit card deal or a cheap balance transfer. Comparing credit cards online has given users the advantage to obtain the finest deals.