Credit cards appear to have only one cost to a user – the interest charged on purchases.

However, there are a whole raft of hidden charges just lurking below the surface.

If the credit card user does not abide by the terms and conditions of using the card, fees and charges will be incurred.

These penalties very from company to company but as a rough estimate you can expect to pay:

- £20 for a late payment
- £20 for going over the credit limit
- £5 for each and every returned payment
- £25 for a stopped credit card cheque

Charges may also be made for replacement of lost or damaged cards.

Many cards also have an annual charge which covers items such as increased travel insurance, higher reward rates, or other benefits.

You will also probably be charged if you use an ATM to withdraw cash on your credit card.

Using your credit card overseas will also result in increased charges.

You can be charged for everything from making a cash withdrawal, to using your card in a store, to converting the foreign currency amount into pounds.

Sometimes these overseas charges can be as much as 10% or your actual transaction.