Millions of credit card borrowers are being hit by higher fees levied by their lenders, according to recent research.
Figures from Moneyfacts.co.uk show that interest rates on cash withdrawals have risen on 25 different products and 69 credit card deals have had their cash withdrawal fees upped over the past two months.
The financial comparison firm suggest that the fee and interest rate increases are due to the so-called credit crunch earlier this year and predict that many borrowers will see their credit card debt burden worsen during the coming months.
“With Christmas coming up, incomes will be stretched to the max with more people perhaps turning to their plastic for access to additional cash, only to get stung by still higher rates and fees,” said Esther James, credit card analyst at Moneyfacts.co.uk
“Choosing the wrong card can be a costly mistake. With almost 300 credit cards to choose from, there is plenty of choice.”
A recent study by homelessness charity Shelter found that more than a million Britons have paid off their mortgage fees by going deeper into credit card debt.