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    Brits using their credit cards abroad are being warned against the practice as it could cost up to three per cent in fees on every purchase, according to a Moneyfacts spokesperson.

    Michelle Slade at Moneyfacts advises individuals that really must use a credit card abroad to take a separate card with them for their vacation and advises that Abbey, the Post Office and the Nationwide Building Society offer cards that do not charge for overseas withdrawal.

    She said: "Most credit cards charge a foreign usage charge, some as much as three per cent for both purchases and cash transactions. This charge is applied each time the card is used and can soon mount up to a significant amount."

    In related news, the Consumer Action Group has warned that bank charges could come as a "savage blow" to people who are already struggling with increasing debt and stretched finances in the current economic climate.

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