<< Most Recent Articles

Credit card limits 'being squeezed'

Spending limits on credit cards are being cut as providers look to reduce the risk of bad debt and prevent consumers from wracking up unmanageable bills.

According to the financial comparison website MoneyExpert.com, around 1.8 million credit card customers have seen their limits squeezed in the last six months by an average of £1,600.

MoneyExpert.com spokesman Sean Gardner said that as the credit crunch bites card companies are becoming stricter about who they lend to and how much customers can borrow.

And he said that while there is nothing wrong with turning to competitive credit card deals to ride out tough economic conditions, consumers should be making inroads into their debts at the same time.

"The warning lights should be shining brightly if you find you're going from card to card without making a dent in the amount you owe," he remarked.

A consolidation loan could help those with debts in different places to combine them into a single monthly payment and make repaying them more manageable.

Meanwhile customers whose credit cards offer loyalty points are being urged to cash in their rewards as separate research from MoneyExpert.com shows that 83 per cent of people are sitting on unredeemed vouchers, points or air miles.

See how much you could save with a debt consolidation loan from Lombard Direct

© Adfero Ltd

07/04/2008 17:08:35

Most Recent Articles