Lenders ‘cutting back on billions’

Credit card lenders in the UK are cutting back on the amounts of money they will allow their customers to borrow, it has been claimed.

According to a report from MoneyExpert, the scale of credit card debt British consumers are allowed to accumulate has been trimmed by more than £3 billion over the course of the past six months.

Close to 1.8 million people have seen their credit card limits reduced in recent months and for many the situation could add to their debt management difficulties.

The changes in lending practices have been attributed to fears among financial services firms that their customers will find themselves unable to repay the money they have borrowed.

“If you don’t have a repayment plan in place it is time to get one,” said Sean Gardener from MoneyExpert.

A report from the Bank of England recently made clear that secured loans deals are becoming less frequently available to would-be credit consumers around the country.