One in eight Brits has seen the credit crunch hit their card limit, according to a new survey.

 A study conducted by personal finance website fool.co.uk found that 12 per cent reported a reduction in the amount they were allowed to borrow, with the average drop standing at seven per cent.

Surprisingly, the report found that while people in older age groups had had their credit card limit reduced, younger people were being allowed to borrow more.

“It seems that banks are sending out confusing signals to consumers as the credit crunch unfolds,” said Fool’s head of personal finance David Kuo.


“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.”

One in six 34-49 year-olds said their limits had been cut, whilst half of 18-25 year-olds reported an increase.