Christmas shoppers urged not to cash in on cards

Sean Gardner, MoneyExpert.com’s chief executive, said that with an APR on cash withdrawal as high as 21.27 per cent, use of this function would add substantially to credit card debt.

“It’s tempting to use your credit card to tide you over for some extra cash. But the advice for consumers is simple. Don’t use your credit card to take out cash at an ATM. It’s one of the most expensive forms of borrowing around,” warned Mr Gardner.

According to the website’s research, it could cost £2.60 just to withdraw £20, plus the interest in the first year, unless the debt is repaid.

For a £100 cash withdrawal, that would be £21.82 of interest to be repaid, prompting Mr Gardner to urge consumers to use other cards as a form of debt management.

“If you are withdrawing cash, use your debit card. Machines from the major banks and building societies don’t charge you for taking out your cash. Only use your credit card for purchases,” he said.