Fool.co.uk responds to Egg's credit-card policy changes

David Kuo, Head of Personal Finance at Fool.co.uk says:

"We are not surprised that Egg has stopped 161,000 customers from spending more on their credit cards.

This is only to be expected as banks review the quality of their customer base as the credit crunch unfolds.

"However, the swiftness of its response is likely to catch many consumers on the hop.

We therefore urge all card customers, especially those between 34 and 49 years of age, to take special care.

"In a recent survey, we discovered that one in eight card holders have had their credit limits cut [1].

One in a hundred card holders have even had their cards cancelled.

"But it is customers between 34 and 49 years of age who are most likely to be affected.

One in six people (17%) in this age group say their credit limits have been reduced, and one in seven people (14%) in their early fifties have seen their spending limits shrunk.

"We reiterate our warning to card holders to take care as lenders pull down the shutters to avoid getting more fingers trapped in the credit crunch." [1] It's time to cut your spending before your bank does it for you, warns Fool.co.uk (29 January 2008).

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