In the midst of a financial crisis, lenders are closing ranks and fearfully raising interest rates yet again as they desperately try to claw back some profit after years of haphazard lending turned around and bit them in the behind.

New figures reveal that interest rates are now at their highest in two years across lenders, with good value credit card deals all but disappeared from the market.

This is despite the Bank of England base rate being cut multiple times in a bid to kick start lending again, sitting now at a record low of 0.5 per cent compared with 4.75 per cent previously.

The government has promised that it will take the side of the consumer this time, clamping down on unscrupulous lending and preventing credit card companies from charging inflated rates and hitting customers with unfounded fees.

However, the government's reaction to the crisis has been met with much scepticism as many see the government's part in past years of encouraging easy lending as intrinsic to the economic downturn.

Credit card holders are now paying more than one per cent more in annual interest than they were two years ago, according to a leading price comparison site.

While that may not sound like a huge rise, the extra profit for the credit card companies is enormous.

Currently, as a nation, the UK owes £6.4 billion on credit cards, which is spread between 31 million people, making an average of £2,000 per person.

For credit card companies, the extra 1.1 per cent of interest for 31 million people owing £2,000 means an extra £712 million in profit.

The study found customers will now pay an average 0.9% more on purchases, 0.7% more on balance transfers and 1.7% more on cash advances compared to prices two years ago.

Sean Gardner, director of the popular price comparison site which carried out the study, said: 'This really is a case of the rise and rise of credit card charges. Even when we started monitoring average credit card fees they were already around 16% – so to see them continue to increase is testament to how much the card companies feel they can get away with.

'Credit is just like cigarettes and alcohol – it has become a highly sought after commodity and that means prices will go up until we've had enough.

'However, banks must be worrying whether they will ever actually get their money back anyway. Having charged so much interest many borrowers have been left with bills they simply cannot afford to repay.'

Typically, credit card companies raise their prices between August and December, as that is when credit cards are most in demand and spending is on an annual increase in anticipation of Christmas.

Two years ago in this period, average standard interest rates on balance transfers rose by a full percentage point from 15.1% to 16.1%, while between August and December last year charges levied on purchases rose by an even greater margin from 16.48% to 17.57%.

The rapid rate rises show no sign of slowing, indicating that the credit cards companies are not ready to relinquish their hold on the market and make a return to a period of cheaper lending.