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Credit card limits cut by £3bn

Apr 9 2008 by Our Correspondent, Western Mail

BRITONS have collectively had their credit limits slashed by £3.1bn as credit card companies worry about consumers’ ability to repay their debts, research showed yesterday.

Around 4% of people said their credit limit had been reduced by their card provider during the past six months, as financial services firms impose stricter lending criteria.

Young people were found to be particularly at risk of having their spending limit changed, with 6% of 25 to 34-year-olds saying their provider had recently cut their limit, according to MoneyExpert.com

Customers typically had their credit limits reduced by £500 or less, with 47% of people seeing reductions of up to £1,000.

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