Credit card charges are soaring as firms tighten the screw

There has also been a sharp rise in the number of applications for a credit card which have been rejected.

It comes as an increasing number of struggling Britons are turning to plastic to make ends meet.

Banks and finance companies have increased the fees they charge customers each time they make a cash withdrawal on 69 cards.

The screw has been tightened further with a decision to increase the interest rates charged for cash withdrawals on 25 credit cards.

Balance transfer fees have been raised on 10 cards.

Companies have also increased the charges to use 18 cards overseas. The rate of interest charged on purchases made in this country has been increased on three cards.

According to the personal finance industry website Moneyfacts.co.uk, all these changes have happened in just two months.

They are a direct result of the global credit crunch, which means banks are taking a much tougher line on lending to the public.

They also reflect the fact that finance companies are looking to make up a fall in income that followed the introduction of a £12 cap on penalty charges for customers.

A separate study claims as many as 3.27million have been turned down by at least one credit card company in the past six months.

Research by the personal finance website Moneyexpert.com found that nine per cent of Britons have seen a card application rejected during the past six months. In the previous six months it was 7.5 per cent. This represents a 17 per cent increase.

Esther James, credit card analyst at Moneyfacts, said: "It seems as if the credit crunch is beginning to cause credit card chaos. A hundred and twenty-five fee and rate increases inside two months is quite staggering.

"With the majority of increases staying away from the headline purchase these fee and rate increases are less in the public view, and often tucked away in lengthy terms and conditions. However, they can still make a substantial increase to the cost of using your card.

"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."

Credit card borrowing rose by £310million in September, the biggest one-month rise for 18 months, taking it above £54billion. The increase came at a time when family finances are being squeezed by higher mortgage repayments and household bills.