Loan and credit card rates have hit the roof since 2006, new research from Moneyfacts.co.uk and Moneynet.co.uk has revealed.

According to the research, anyone looking for a personal loan will no longer find a rate of less than 7% APR as The Co-operative Bank has raised its rate from 6.9% to 7.3%.

The lowest available loan rate is AA's telephone loan at 7.2%, according to the website. Additionally, a personal loan of £10,000 over five years would now cost £423 more over the term than it would have in 2996.

Moneyfacts analyst Michelle Slade said: "Just like with mortgages, lenders are struggling to raise funds to lend out to consumers. As a result this increase is being passed on through the APR offered. With many lenders offering typical rates or personal pricing, it is likely that many customers are being offered a much higher rate."

She further addded: "It is highly probable that lenders are passing on the increased costs through payment protection insurance, as a way of keeping the rate down."

The price hikes come at a time when the cost of living is soaring, Michelle Slade continued: "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."