Borrowers Facing Record Fees For Finance.

With the vast majority of the consumers in the country owning more than one type of finance product there are millions of pounds in fees and charges paid every year to money hungry banks.

The average UK consumer with just five standard financial products to their name faces well over £100 in penalty fees, with even the smartest and most organised struggling to avoid them. Simply by taking out a mortgage, current account, personal loan, savings account and credit you could face up to £300 in fees in the course of a month.

"It is unbelievable that five financial products alone can be the root of so much penalty pain," said a spokesman for the leading financial advice firm which conducted the survey.

"There are a huge number of defaults and penalty charges of which even the most astute consumer can fall foul. It is important to raise the flag of awareness on these penalties and blow the whistle on providers who do not make their penalty fees transparent to consumers from the outset."

Personal loans can contain up to 11 forms of fees, including early repayment charges, late payment charges and unpaid direct debit charges.

Research from the firm, the UK's largest comparison website, has found that around ten per cent of British adults are permanently in their overdraft. Analysis from the company shows that someone with an overdraft of £500 could be paying more than £240 a year more that they should for the privilege.

It is important to shop around for all your financial products and make sure you are getting the best deal for your individual circumstances. If you find you go overdrawn every month then a current account with a low interest or free overdraft could be for you. However, if you're never overdrawn you might want to look for other benefits, such as charges for use abroad or in credit interest rates.

If you would like to know more about financial products why not ask AnswerBank Business and Finance.