Britons have credit limits slashed by £3.1bn over debt repayment worries

Around four per cent 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 six per cent 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 per cent of people seeing reductions of up to £1,000.

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But 15 per cent of people saw their spending limits slashed by more than £2,500, giving an average reduction of £1,680.

The most high profile case of credit limits being reduced was when internet bank Egg wrote to 161,000 customers in February telling them their credit cards would stop working in 35 days.

The group claimed the customers had a "higher than acceptable risk profile", but many of those affected said they cleared their balances in full each month.

Today's research suggests that Egg is not the only company that is reviewing the risk profile of its customers. The figures come days after data from the Bank of England showed borrowing through credit cards, overdrafts and loans soared to its highest level for more than five years during February.

Unsecured debt increased by £2.35 billion during the month, prompting speculation that overstretched consumers were relying on credit to meet their daily living costs.

Sean Gardner of MoneyExpert.com said: "Overstretched consumers might look to resort to credit in a bid to make ends meet but they should not rely on it as a way of keeping spending.

"Credit card companies are becoming stricter in who they lend to and the amount of money their customers can borrow."

He said the credit card market was very competitive, and many people were turning to interest-free deals to tide them over some tough economic conditions.

He said there was nothing wrong with doing this as long as people controlled their spending.

Mr Gardner said: "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."

YouGov questioned 2,125 people between March 31 and April 2.