A study carried out by the Motley Fool reveals that around one out of eight (12 per cent) cardholders have had the amount of money they are able to borrow cut back. It is claimed that the typical person has seen their spending curtailed by about seven per cent. Meanwhile, one in every 100 consumers has had such a borrowing product cancelled altogether.



The report also indicates that older people are the most likely to face a cut in their credit limits. Some 14 per cent of those in their early 50s have witnessed a reduction in their ability to borrow via their card, while 17 per cent of 34 to 49-year-olds have had this happen to them.

For those who look to their cards to supplement their money management, a cut in spending limits or having their card withdrawn may result in them struggling to meet various other financial commitments. Such areas could well include UK loan payments, utility bills and rent or mortgage costs.

However, it is suggested that young people could be able to get to grips with their money management with greater ease as consumers between the ages of 18 and 25 are revealed to be three times more likely to have seen their spending limits increased than other Britons. About half of cardholders in this age group state that spending limits have gone up, with the majority claiming this has been raised by a fifth.

David Kuo, head of personal finance at the Motley Fool, comments: "It seems that banks are sending out confusing signals to consumers as the credit crunch unfolds. On the one hand, they are slashing credit limits to older consumers who have become accustomed to credit. But on the other hand, they are increasing credit limits for younger consumers at a time when we need to practice greater financial discipline."

Pointing towards the firm's Your Finances in 2012 report, the expert claims that money lenders are increasingly withdrawing access to unsecured borrowing, particularly for older borrowers. It is suggested that this will lead more people to apply for UK secured loans.

"There are indications that lenders are pulling down the shutters for some customers and holding the door open wide for others. But consumers must avoid getting their fingers trapped in the credit crunch because what banks give with one hand they can easily take away with the other," he added.

For those worried that the credit crunch will affect their ability to borrow via a plastic card applying now for a low-rate secured loan could provide financial assistance. Taking out this type of loan may also help people to pay off their credit card bills and other spending demands quickly so avoiding any possible damage to their financial history. In a recent article, the Financial Times stated that loan lenders are increasingly tightening their lending criteria due to wider problems in the economic markets. As such those who have a good history of money management and are looking to get a secured loan, whether to pay off debts, fund home improvements or for other purposes, may wish to apply for a loan immediately.