The cost of credit card borrowing continued to increase during December, with lenders hiking their rates from an average of 15.89pc in November to 16.28pc.

The interest charged during the month was the highest average rate since September 2006, and considerably higher than the 15.58pc seen in December 2008.

Rates for people borrowing £10,000 through personal loans remained at 11.08pc, up from 9.3pc a year earlier and the highest level since August 2002.

Interest charged on a £5,000 loan also rose by more than 1pc during the year, climbing from 12.08pc to 13.38pc, while average overdraft rates rose from 18.04pc to 18.96pc.

The figures contained little cheer for savers, with the average rate paid on a branch-based instant access account remaining close to its recent record low at 0.17pc, while interest on notice accounts dropped by 0.03pc to 0.31pc.

Returns paid on fixed-rate bonds, currently the most competitive area of the savings market, fell for the fourth month in a row, dropping to 2.51pc, down from a recent peak of 3.05pc in August last year.