The average UK consumer’s credit limit has been cut £1,600.

Credit card companies have clawed back £3.1 billion worth of credit by cutting the spending limits of their customers, research from MoneyExpert.com has shown.

According to the independent financial comparison website, around 1.8 million credit card customers – 4% of British adults – have had their limit reduced in the past six months.

Whilst almost half (47%) have experienced cuts of no more than £1,000, with 15% of people having their credit limit reduced by more than £2,500, the average reduction amounts to just over £1,600, MoneyExpert.com said.

Young borrowers are most at risk of having their limit reduced, with 6% of 25-34 year olds experiencing a cut in their spending allowance.

MoneyExpert.com representative, Sean Gardner, 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.”

Gardner warned consumers that they should only use interest-free credit card deals to tide themselves if their spending is controlled.

“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 added.

According to MoneyExpert.com, around 980,000 people switch credit card provider each month. The site recommended consumers regularly review providers for a range of services, but warned it might not always make financial sense to switch.

By Natasha Piscitelli