Barclays has supported its decision to send out letters encouraging customers to make use of their credit cards and withdraw cash from ATMs in the full knowledge that customers will incur high charges.

According to a report in the Daily Mail newspaper, debt campaigners criticised Barclaycard for sending a letter to thousands of customers encouraging them to use their card to withdraw cash for “a cup of coffee or your daily paper”.

Statistics show that credit card customers in the UK continue to be hit by the rising costs in increased fees and charges over the past two years, according to a recent report.

The report released earlier in the week says that the hike in fees and charges has put a strain on financial management in many cash strapped households.

According to one industry official, the average purchase rate on a credit card has jumped from 14.9% in April 2006 to the latest figure of 16.4%.

A Barclaycard cash withdrawal attracts a 2.5%, with a £2.50 minimum with interest also charged on withdrawals at a rate of 27.9%.

Barclaycard said: “Barclaycard is a responsible lender and has not sought to persuade people to make additional cash withdrawals.