Credit card users urged to take care

Credit card users have been urged to pay close attention to their spending after one financial services firm decided to stop allowing its customers to spend via plastic.

Fool.co.uk has warned that borrowers between the ages of 34 and 49 are among those deemed to be most at risk to the kind of action taken recently by Egg.

The advice from the personal finance comparison firm comes soon after its own research found that almost one in eight people who spend via plastic have seen their lenders cut the amount of credit card debt they are able to access.

A spokesperson for Fool.co.uk, said: “We are not surprised that Egg has stopped 161,000 customers from spending more on their credit cards.”

“We reiterate our warning to card holders to take care as lenders pull down the shutters to avoid getting more fingers trapped in the credit crunch.”

Last week, Equifax advised graduates to assess their personal finance and debt management situation when they leave university.