Credit card rates have hit new unheard of interest heights according to new research from Moneyfacts.co.uk and Moneynet.co.uk.

According to the statistics anyone looking for a low interest credit card will no longer find a rate below 20 per cent. In fact the rate has risen from 18.9 per cent to 24.39 per cent in the space of just two years.

Andrew Hagger of Moneynet.co.uk said: "It's not surprising to see lenders increasing rates in this area as taking cash on your credit card is a sign that you're potentially facing financial difficulties, unfortunately some people will be getting to the stage where they can't make ends meet and will pay whatever interest and charges it takes in order to keep their heads above water."

Moneynet.co.uk has calculated that if someone had a cash advance balance on their credit card of £1,000, at a rate of 24 per cent and paid the minimum 2.5 per cent each month, it would take almost 31 years to clear the debt.

Michelle Slade, analyst at Moneyfacts.co.uk, concluded: ''The price hikes come at a time when the cost of living is soaring, at a time when costs across the board are increasing, this will be more unwelcome news for consumers. The demand for personal loans is likely to be increasing as more households look to consolidate existing debts. Lenders are tightening criteria and those that can get a loan are finding they have to pay a much higher price."