Borrowers planning to rely on credit cards over the coming months may be in for a shock as lenders make moves to reduce limits.

According to a report today from the Thrifty Scot, credit cards may no longer be a suitable borrowing option for those seeking significant sums, given that some providers are cutting limits. It is possible that those seeking funds for a holiday or home improvement might instead seek out a low-cost secured loan as an alternative source of funds.

The publication indicates that MBNA and Capital One have been identified as being particularly stringent in terms of curbing customer borrowing limits, while Co-Op, HSBC and Halifax are also taking steps to reduce their risks.

The firms are all attempting to reduce the chances of their customers defaulting given the current tightness in financial markets and widespread predictions of enforced frugality ahead, with household budgets set to come under strain.

Consumers concerned about their own levels of debt - perhaps struggling with payments on a number of credit cards - might like to consider a consolidation loan as a means of regaining control over their finances. For those convinced that they will be able to continue making payments on any future borrowing, however, a personal loan could prove a cost-effective alternative to a credit card.

The Thrifty Scot reports that troubles in the credit card market are not only becoming evident in terms of constrained borrowing limits. It adds that many lenders are also turning down many applicants due to blemishes on their credit records - with MoneyExpert putting the figure of monthly rejections at 500,000. Furthermore, the Bank of England has released data saying that the average rate of interest on credit cards is on the rise, making them less affordable as a borrowing option.

Recent data from price comparison site MoneyExpert has indicated that as many as 6.5 million people have been obliged to consolidate their debts in the last five years due to becoming aware of developing an unfavourable financial situation. The site suggested that younger people were those most likely to have consolidated, with 23 per cent of 25 to 34-year-olds having transferred all outstanding borrowing to a single lender compared to 14 per cent of the population as a whole over the last three years.

Meanwhile, it is possible that deteriorating economic conditions in the UK as a whole are proving the driving force behind consumers looking to establish a secure personal finance condition. A recent report from price comparison site uSwitch suggested that more than one in five borrowers said that their concerns about their financial situation were exacerbated by media reports of the credit crunch and of established financial institutions suffering - for instance Northern Rock in the closing months of 2007. At the same time, 9.5 million Britons were thought to have hit the upper limit of at least one avenue of borrowing in the last few months, be that credit cards, overdrafts or loans. Anyone in such a financial situation might like to investigate a debt consolidation loan as a means of getting back on the road to financial security.

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