One of the reasons we find it difficult to pay off credit card debt is because of the high fees. The Reserve Bank says that in 2004, there was a 30 per cent surge in credit card fees and the income banks made from fees grew by 4 per cent or $327 million.

Fees on credit cards issued by big banks have more than doubled since 2001 and have been growing at an average rate of 29 per cent a year since 1998. According to the Reserve Bank's report, the average annual fee on a standard credit card was $38 in 2000 but last year it was $85.

The overall credit card debt reached a record $30.27 billion in March, with the number of cards in use increasing to almost 12 million. The average outstanding debt on a card was $2565.

The Reserve Bank's report has also shown that fees from credit cards have exceeded fees from home loans for the first time.

If you are unhappy with the level of fees you are paying on your credit card, there are a number of things you can do:

• Negotiate with your bank. They may reduce the interest rate you pay or even your annual fee if you ask, especially if you have other products with the bank such as a home loan or investment account.
• Shop around for another card. Increased competition has led to companies offering good deals on their cards. There are many organisations offering a honeymoon period of zero interest or low-interest when you transfer your balance. This may be all the time you need to get rid of your outstanding debt.
• If you don't want to switch, try and pay off your credit card debt quickly so you avoid building up a larger debt.