Borrowers are being hit with hikes in credit-card charges just in time for Christmas, in the latest sign that the chaos in the financial markets is being passed on to consumers.

Card customers have been stung with 125 increases in either credit-card rates or fees in the past two months alone, according to research from data firm Moneyfacts.

Banks are blaming the turmoil in the credit markets, which has pushed up the cost of borrowing worldwide, but this will be cold comfort to families who rely on their plastic in the festive season.

American Express hiked the interest rate on spending on its Platinum Moneyback card from 15.9 to 18.9 per cent at the end of October, while Marks & Spencer upped the rate on its &More MasterCard from 17.9 per cent to 18.9 per cent.

Card firms are also punishing so-called ‘rate tarts’, who regularly shift their debt to take advantage of zero-rate deals. Alliance & Leicester has hiked the balance transfer rate on several cards from 2.25 per cent with a minimum of £2.50 to 3 per cent with a minimum of £3.

Esther James, credit card analyst at Moneyfacts, said: “It seems the credit crunch is beginning to cause credit card chaos. No less than125 fee and rate increases inside two months are quite staggering.

“With the majority of increases away from the headline purchase rates, they are less in the public view and often tucked away in lengthy terms and conditions. However, they can still make a substantial increase to the cost of using your card.

“With Christmas coming up, incomes will be stretched to the max with more people perhaps turning to their plastic for access to additional cash, only to get stung by still higher rates and fees.

Moneyfacts found the most changes were to cash withdrawal fees, where 69 cards have hiked their charges. Halifax, for example, now charges 3 per cent with a minimum of £3 if you use an ATM with your credit card, up from 2.5 per cent previously.

Another 25 cards have increased the interest rate on cash withdrawals. Co-operative Bank is one of the worst offenders, with rates on several cards up by five percentage points at 23.9 per cent.

The cost of using your credit card abroad has also gone up, which Intelligent Finance having increased its rate from 2.75 to 2.95 per cent

James said: “Avoid taking cash from your credit card unless you absolutely have no choice. Interest rates average 23 per cent, and are charged from the date of withdrawal. Also expect to pay a fee of up to 3 per cent.

Separate research from Moneyexpert, a financial website, found that the number of people being rejected by credit cards is up 17 per cent in six months at 3.27m people.