Monday, April 7, 2008
Another Credit Squeeze
Brits have seen their credit card limits cut by £3.1 billion in the last six months. Since November, 1.8 million credit card customers have seen their credit limits slashed by an average of £1,600, according to new figures from MoneyExpert.com. In February Egg cancelled the cards of 161,000 customers which it deemed to be a high risk, and many other card companies are now taking similar action – with borrowers in their 20s most likely to see limits cut. "Credit card companies are becoming stricter in who they lend to and the amount of money their customers can borrow," said Sean Gardner of MoneyExpert. “Overstretched consumers might look to resort to credit in a bid to make ends meet but they should not rely on it as a way of keeping spending."