IVA & Debt Consolidation Advice

Research has shown that Credit card companies are increased their fees between cards by an average of 0.5% during the past year.

MoneyExpert.com said that providers are charging people, who were switching balances to take advantage of 0% interest introductory deals, 2.67% of the amount being moved, up from 2.1% in September last year.

The group said 160 credit cards currently gave people the option of transferring balances to them, with fees ranging from 1.75% to 3% of the amount being moved.

Sean Gardner, chief executive of MoneyExpert.com, said: "Card firms have lost out since they were forced to cut so-called default charges so now customers are losing out as balance transfer fees increase.

"Analysts talk about the so-called water bed effect - cuts in one area mean increases in another area. And that has been the experience for credit card customers with new charges appearing to replace the old charges which have been cut.

"Customers should of course still switch credit cards in search of better deals and particularly if they are paying standard rates of 16.9% or so on debts. But they've got to remember there is a cost involved and factor that into any savings they make."