A number of credit card companies have increased their borrowing costs just in time for the summer holidays, when many households are likely to be relying on their credit cards, according to a recent report.

The summer holidays when schools break up for six weeks are just around the corner, and many families may be gearing up for a break abroad, a holiday in the UK, or some day trips for the family. Whatever the choice, many of these people will be relying on their credit cards to fund their break or days out, particularly in the current financial climate when money is so tight for many.

Industry officials have said that consumers could end up paying millions of pounds extra in interest simply because of the decision of some credit card firms to take advantage of the popularity of 0% credit cards at this time of year by hiking up costs. HSBC, Nationwide, Mint, RBS, and Capital One are said to be amongst those that have hiked up fees and charges on their credit cards in time for the holidays, which means that many cardholders could end up paying over the odds.

Reports state that it is a common tactic for credit card firms to hike up the cost of card usage when July and August come around, as this is a time when many people up the usage on their cards, and credit cards can therefore make even more money off consumers. Consumers are warned that extravagant spending on their credit cards could therefore leave them with a similar financial hangover to that often faced by consumers after the expensive Christmas and New Year periods.