Amid signs of an economic recovery lenders are trying to reduce the chances of developing debt problems by lowering limits on cards and tightening loan criteria.

A report by the Bank of England suggests that lenders will enforce stricter limits on those they give money to and reduce limits on plastic to reduce the amount of credit card debts racked up in the run up to Christmas.

The Bank's Credit Conditions Survey also warned that more people would default on personal loans, as the profits made by banks had risen on credit cards and unsecured loan products.

This news comes despite signs of a recovery in the economy, as house prices and mortgage approvals have risen since the low levels seen during the height of the credit crunch.

Paul Samter, economist at the Council of Mortgage Lenders, said: \”There are encouraging signs that households are coping better than expected with difficult conditions. Despite this, however, we still expect payment problems to increase in the coming months, given the weak economy and jobs market."

Ivan Cooper, Chairman at debt management specialists Chiltern, said: “Billions of pounds of taxpayers' money has already been pumped into some of the biggest banks in Britain, yet lenders still seem relunctant to lend.

“As a result, this means that more people are likely to be in need of impartial debt advice, as they have fewer options to solve their financial problems.”

Debt specialists like The Debt People, Hamilton Locke and Chiltern, enable people that are struggling to repay their unsecured balances (personal loans, overdrafts and credit card debts) to regain control of their finances, whilst still repaying debts.