Credit card firms are cashing in on customers who use their cards to take out cash from an ATM, according to new analysis by has said that the average annual percentage rate (APR) charged to customers who borrow cash and do not clear the balance has continually risen since November 2006 from 21.27% then to 23.7% in June 2007 to 25.3% now.According to two out of three credit cards still charge more than the market average APR for taking out cash. The website said that 159 of the 246 cards on the market charge over 26.2%, with the most expensive charging a whopping 46.19%.Credit card firms have seen profits squeezed by both a regulatory clampdown and the rate tart phenomenon, with customers switching cards to chase 0% deals.With the cost of living continuing to rise, many people may be forced to turn to their credit card for cash in what could turn out to be an expensive last resort. With millions of pounds being withdrawn from ATMs using credit cards each month, warns customers to pay off the balance if at all possible or face hefty charges.Even those who do pay off their balance will be charged something - card firms impose a fee for withdrawing cash on their plastic which can be as high as 3%.Sean Gardner, director of, said: "Before you put your credit card in an ATM for cash, remember that it is one of the most expensive forms of borrowing around. Unless it's absolutely necessary you should try to find another way to make a payment."Remember to clear your balance as soon as you can so that any cash you have withdrawn doesn't sit there accruing interest. If you can use a debit card or pay another way, it's bound to be cheaper than your credit card."

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