Brits paid a massive £553 million in penalty fees and charges in 2005, according to new research.

The study by MoneyExpert.com found that the bill was comprised of late payment fees on credit card, overdraft charges, mortgage application fees, early redemption penalties on loans and cashing in savings accounts early.

Sean Gardner, chief executive at MoneyExpert.com, said: “This is a staggering figure, but it is understandable when put in the context that we are a busy nation who have less and less time to keep a close eye on our personal spending and have little time for financial planning.

“It’s therefore difficult for many time-pressured people to make the most of their money, research financial products and ensure they don’t fall foul of a minefield of costs and charges levied by providers. In our experience, many customers are crying out for a helping hand through the complex world of personal finance.”

The research found that an average £70.70 was paid out by 7.8 million people on financial products in the past 12 months.

In addition, nearly one in five people have paid some kind of penalty fee while 1.7 million people paid more than £100 in fees and charges in the past year.

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