RUNCORN, England — Consumers are paying more in fees for their banking products than ever before. Penalty charges such as late fees, which have been rising in cost in recent years, are being doled out to consumers who sloppily manage their day-to-day finances. These fees are adding pounds of debt to already high balances and costing consumers hundreds of millions of pounds each year.

Experts say that as a problem, penalty fees are particularly troubling because they are completely avoidable. According to Steve Rhode, chairman of the financial crisis centre Myvesta UK, the growing late fees and penalty charges are often the result from a simple lack of time to properly manage the household finances.

"There is a certain segment of the population that will always be behind on their bills because they simply do not have the available means to pay them. But these days the largest cause for late fees and other penalty fees being charged to consumers is the lack of properly paying attention to the household finances and taking the time to go over all the bills. More and more people with the means to pay their bills are ending up behind," Mr Rhode said.

Besides high penalty fees, Rhode also warned of other problems stemming from current money mismanagement.

"Consumers currently paying high penalty fees will also suffer from higher interest rates on current and future loans, and could even face collection calls and other financial stresses," Mr Rhode said. "Even one late payment could trigger an interest rate increase costing thousands of pounds."

Rhode recommends that those struggling to pay their bills on time should seek professional assistance to manage their money. Myvesta UK's AllPaid programme can manage day-to-day finances, pay bills on time, help reduce debt and plan for future savings. To learn more about AllPaid visit Myvesta.org.uk online or call free on 0800 1116 885.