You pay your credit card balance off each month, keep within your credit limit and make your monthly payments on time. An exemplary customer like you won't suddenly have your credit limit slashed right?

Wrong! In fact your credit limit may be reduced at any time with little or no notice for any number of reasons and this is happening more and more often as credit card companies seek to reduce their exposure.

There are numerous prompts for the reduction to be made: job loss, infrequent card use, getting older, spending over your limit, frequent cash withdrawals. The problem is that by giving little or no notice many people are being left with no means of making large purchases or having that extra financial security provided by their flexible friend.

The thinking is that if customers are pre-warned of the increase then the temptation will be to go out and spend up to the limit before it is gone and in this way the companies can claim to be acting responsibly by not pre-empting this kind of rash spending spree.

Further bad news is also on the way for many as Halifax and Bank of Scotland will be increasing interest rates for many of its credit card customers by on average between 1% and 5% over the next few weeks.

With interest rates at an all time low such increases will be hard to stomach by many and will inevitably push some users deeper into serious financial waters.