Credit card firms are increasing the amount of money they charge customers who make cash withdrawals, analysis from MoneyExpert.com reveals.

The average APR charged for customers using an ATM and not clearing the balance is now around 23.5% – up more than two per cent compared with 21.3% in November 2006.

Sean Gardner, chief executive of MoneyExpert.com, said: “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.

“Using a debit card for cash withdrawals is almost always the best idea.”

Not all card providers charge high APRs on cash withdrawals – Co-Op’s Bank Base Rate for Life Visa charges 5.6%. The highest APR is Vanquis’s 46.2%.