Britons may find that their access to credit is diminishing, a new report shows.

Research carried out by MoneyExpert indicates that some 1.8 million credit card holders, about four per cent of adults, have seen their borrowing limit curtailed by their money lender during the last six months. With the average cut revealed to be worth around 1,600 pounds, it was shown that an estimated 3.1 billion pounds of credit has been reclaimed from consumers’ pockets. Although it was shown that about half (47 per cent) of borrowers have their credit limits reduced by less than 1,000 pounds, 15 per cent have faced cuts of 2,500 pounds or more.

In addition, the study indicated that younger people are more likely to see their credit limits cut. An estimated six per cent of those between the ages of 25 and 34 – about 568,600 consumers – have faced a spending cut.

Following on from a cut in credit card limits, it may be possible that consumers struggle in managing other demands on their spending in areas such as

Mr Gardner went on to report that although there is “nothing inherently wrong” with switching credit card supplier to take advantage of good deals, consumers still should be cautious of the need to make repayments on their debts. “The warning lights should be shining brightly, however, if you find you’re going from card to card without making a dent in the amount you owe. If you don’t have a repayment plan in place it is time to get one,” he stated.

The chief executive also reported: “Our switching index shows that around 980,000 people switch credit card provider each month. With so many people needing credit too you have to wonder whether they are managing their money well or merely papering over some serious financial cracks.”

For those people who find that they are struggling with their credit cards, taking out a debt consolidation loan may be recommended. By opting for this kind of loan, consumers may find that they are able to merge debts accrued across a number of plastic borrowing products into a low-cost affordable monthly repayment. Such a move could well leave them with more disposable income.

Getting a debt consolidation loan for this purpose could be of particular assistance after a report released last month by the Thrifty Scot revealed that a number of providers, including Capital One, Halifax, HSBC and MBNA, have taken steps to curb borrowing limits in an attempt to reduce the risk that customers will not be able to make repayments. It was also reported that rising numbers of money lenders are rejecting those applicants who have imperfect credit records.