Credit cards have become a "more expensive" borrowing option, it has been argued.

Chris Tapp, director of Credit Action, commented on the effect the credit crunch is having on borrowing and stated that credit cards with low interest rates are less widely available as a result.

Borrowers are finding it increasingly difficult to obtain credit cards, he claimed - and when they do it can be at a much higher rate of interest.

However, Mr Tapp added that credit cards continue to be a popular form of borrowing, as people often apply for new ones to get a better deal.

"Credit cards are not about to go away," he said. "They are now a very normalised part of the way that people manage their money and manage their borrowing."

According to Mr Tapp's organisation, Brits owed £54.7 billion on credit cards in January and the average interest rate is currently 17.67 per cent - 12.4 per cent above the Bank of England base rate.

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