Credit cards Updated:
Consumers will need to be wary of the amount of credit that is available to them in the new year, it has been suggested.
According to fool.co.uk, banks and credit card companies are likely to start cutting back, meaning customers could find themselves over their limits.
Head of personal finance at the site David Kuo explained that although credit card holders may think they are within their permitted level of debt, firms "could start to chip away at that", so they will have to be careful.
"The banks are actually cutting back on people's credit card limits and they are cutting back on people's overdrafts so you will have no option but to actually start paying that off," he added. Those who wish to switch providers in order to avoid a tightening of their limit may find a better deal by conducting a credit card comparison.
Earlier this week Halifax advised shoppers to consider using a zero per cent balance credit card.
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