With the effects if the recession, continuing to raise unemployment past 2.38 million and credit rejection beyond 3.23 million, credit card users are trying to maintain a feeling of safety and reassurance.

Figures show that over16 million credit card users are holding onto at least two credit cards accounts, even though they do not use them anymore.

The reports comes from a price comparison website, which states that such customers are, in total holding onto more than 38 million unused credit cards and have a credit limit of over £200 billion.

Close to 2 million customers stated that by cutting up their credit cards, they were doing 'the safest thing' to protect themselves from overspending, during the economic downturn. Also around 10 million card users have claimed that they have simply stopped using them.

Louise Bond, personal finance expert at a price comparison website, said: "Overall it seems people are bombarded with conflicting opinions as to whether or not they should close credit card accounts that they no longer use. In times of such financial turbulence, it's hardly surprising that people don't want to let go of what they consider to be a financial lifeline.

'The lifeline could become a financial bottle neck'

"There are several issues to consider as credit checks are influenced by the amount of credit available to spend. So in effect, this lifeline could become a financial bottle neck to the next best deal.

"Hoarding as many as six un-used credit card accounts is excessive. It is a problem for both the credit card industry and individuals. In recent years, we have seen providers close down these accounts or, in some cases, introduce a fee for consumers that don't use their credit cards."

Louise concluded by saying: "This may seem harsh but these dormant accounts do cost providers money to maintain. Whilst we're not telling consumers to rush out and close down every account they do not use, if you do have as many as six a little spring clean wouldn't go amiss."

Some feel that by keeping hold of their credit account provisions, they will be able to have access to nearly £12,000, which appears to be quite a lucrative sum, during the economic downturn that is gripping the UK. With almost 3,200 people being made redundant every day, a property repossessed every 10 minutes and 331 declared insolvent or bankrupt every day this is hardly surprising.

However, this practice could lead to being overdrawn and thus have negative effects, particularly on credit scores as providers also examine the amount of credit available in relation to the ability to repay debt on time.

Negative credit effects

As a nation the UK is notoriously bad at keeping an eye on our credit reports. Although the recession has created more consumer interest in these reports, research from the price comparison website showed that 54 per cent of consumers have never looked at their credit report.

Surprisingly, of those who did check their credit record in the last 12 months, 13 per cent found mistakes such as payments listed incorrectly as 'missed' and inaccurate credit limits.

Along with the negative impact on your credit score, fraud is also a consideration. A surge in fraud is usually seen during recessions and the present one is no exception.

Last year alone, fraudsters enjoyed a spending spree of £54.1 million on lost and stolen credit cards. They also cashed in to the tune of £10.2 million by using cards intercepted in the post.

This is the type of activity consumers may not even be aware of if one of the 38 million dormant credit card accounts are being used. These dormant accounts become easy pickings for fraudster as, in many cases, they could well be registered to an old address and it could take several months, if not years, to identify the abuse.