Credit card customers face a dramatic drop in the amount of money they can spend on their plastic, new figures show.
According to research carried out by MoneyExpert.com, credit card companies across the UK have cut the spending limits of their customers by a total of £3.1 billion.
It also found that around 1.8 million credit card holders have had their limit reduced in the past six months, with the average reduction being around £1,600.
Sean Gardner of MoneyExpert.com explained that some consumers might take this as a cue to looking for a new credit card provider .
He said: "The credit card market is very competitive as people turn to interest free deals to tide them over some tough economic conditions.
"And there's nothing inherently wrong with taking advantage of a zero per cent credit card for a year as long as spending is controlled."
However, he added that anyone who is moving from credit card to credit card without paying off anything they owe should look at reducing their balance of face problems in future.
Last week, data released by Sainsbury's bank revealed that UK consumers transfer around £1 billion a month between credit cards.
News Side
Credit card limits cut by GBP3.1bn, study shows
Mon, 07 Apr 2008
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