Financial comparison site MoneyExpert has found that the average APR for cash withdrawals on credit cards has risen in the last six months to 23.48 per cent, a rise from November’s average of 21.27 per cent.
This rise could mean that credit card debt grows for consumers, with MoneyExpert advising card holders to pay off cards in full to avoid the charges.
“Borrowing cash on your credit card is incredibly expensive and unless it’s really necessary we’d urge people to think twice before doing it,” said Sean Gardner, chief executive of MoneyExpert.
“It can be tempting to use you credit card to take out cash but if you do you should clear the balance as soon as possible,” he added.
Mr Gardner also said there are “so many” ways of borrowing money at a cheaper interest rate.
Research from travel insurance provider InsureandGo revealed this week that some 1.3 million people have been the victim of debit and credit card fraud when using their plastic on holiday, which could involve withdrawing cash.