The British public paid £553 million in penalty fees and charges in 2005, according to a recent study.

Research from financial companies MoneyExpert.com and Defaqto claims that charges for late payments on credit cards, overdraft charges, and mortgage application fees were among the main contributors to the figure.

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."

The study found that 1.7 million people paid more than £100 in fees and charges during 2005, with one in five of the population forced to pay some sort of penalty fee.

The study found that 38 per cent of the population, 18.6 million, are planning a much-needed review of their finances.