Credit card companies are losing income because an increasing number of Britons are turning to remortgaging their homes as they seek to regain control of their finances, it has been reported.
According to the Independent, many debtors used the "large chunks" of equity in their homes to consolidate their borrowing into a more manageable amount.
This has led to many cutting back their credit card spending, it claimed.
Datamonitor analyst Kieran Hines told the newspaper: "Some consumers are unwilling to use credit cards because of a perception that they will get into more debt."
Other factors influencing the income of credit card providers include a rise in bad debt and an increase in competition.
Last year, Picture Finance called on Britons to take a more "proactive approach" to cutting the cost of their credit.
Its marketing director Julia Dallimore said consolidating credit into a more favourable rate is a good way to "significantly" reduce monthly repayments.