RUNCORN, England — For individuals across the UK the cost of credit is getting higher. In recent years credit card issuers have been slowly raising the amount of late and overlimit fees charged to consumers who pay their bills late or don't keep tabs on their spending. As a result cardholders are now paying record amounts of fees on credit cards, draining much needed cash from the pockets of consumers and lining those of the creditors.

"Banks have been raising fees for one reason, they make money on them," said Steve Rhode, chairman of the not-for-profit group Myvesta UK. "Banks know you're going to slip up every now and again and miss the occasional payment or accidentally go over your limit, and they're more than willing to make profits off of your carelessness."

Even though recent legislation has curbed the amounts banks can charge in penalty fees, Mr Rhode says countless consumers will still end up paying millions in fees that they could have avoided in the first place.

"For most people it's simple bill mismanagement that ends up costing them hard earned pounds in fees by credit card companies," Mr Rhode said. "By taking charge of your financial life and paying attention to your finances, you can eliminate these unnecessary fees altogether."

Mr Rhode offered these tips on avoiding credit card fees:

• Pay your bills on time - It sounds obvious but sending off your payment long before the due date is the best way to avoid late fees.
• Pay attention to your credit limit - It only takes a pound or two over your limit to trigger a fee. Know your available credit at all times.
• Watch your statements - Make sure you know your balances and pay attention to your payment due date, it could change each month.
• Take advantage of technology - Many creditors offer online account management tools making it easy to keep tabs on your accounts.

"Even if you can easily afford any penalty fees charged by your creditors, a history of late and overlimit fees will cost you much more in the future with a blemished credit file," Mr Rhode added. "In the end you will pay much higher interest rates on all of your credit cards, mortgages and other loans."