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With the credit crisis putting people's finances under increasing stress, financial services firm Equifax has suggested struggling consumers to avoid slashing their credit cards in an effort to have control on spending.

The group reports that while efficient fiscal management should be a top priority for those having troubles with debt crop up from credit cards or loan repayments, slashing cards could make attaining credit in the future more complicated. While money markets become less generous, many creditors have started to provide new packages on a more stringent basis, the firm asserts. For those with a history of missed loan and credit card repayments, entailing credit may become impossible as lenders look to minimize risk.

As a result, the firm asserts that it is vital that accessible cards remain usable in case future credit is difficult to come by, although Equifax suggested that to have control over in spending should still be a first priority for those struggling with debt. For those who find themselves in a situation where they are unable to secure a new deal, a bad credit loan can be appropriate in allowing people the capital to acquire finances back on track and starts making regular payments towards existing debt.

According to Neil Munroe, external affairs director at Equifax "A natural instinct when getting to the point of struggling with too much debt, especially on credit cards, is to reduce them up." He added that while it is vital to reduce unnecessary spending, existing cards may be useful later on. Seeking a bad credit loan provide funds to the borrowers so that they can easily cope with their all financial commitments on time.

"If they have had a record of debts and defaults then they will find that new applications may not be accepted. So they should stop using credit cards and do everything possible to pay off outstanding balances, but don't slash them all up," he continued.

Mr. Munroe also suggested that it is important that consumers do not forget about cards on which there is an outstanding amount, as missed payments will be logged on credit reports and could potentially put future credit card applications in danger.