AS the first festive adverts appear on television and the lights switch on in towns around the country, many consumers will be thinking about how they are going pay for Christmas.
In a materialistic society, where corporate messages imply we simply must have the latest toys and gadgets, people often turn to credit cards to fund purchases. This is particularly true at this time of year.
A survey by MoneySupermarket found a fifth of respondents will borrow to pay for Christmas this year, with 11% turning to their credit card to cover the cost.
And those who do use credit cards do not always pay the debt off quickly. A GoCompare.com survey found that 23% of consumers do not expect to have paid off their festive spending on credit and store cards by the end of January, with some expecting it to take until the end of June.
But competition between providers is now so intense that for some Christmas spenders, the right card could ease the pressure on household budgets.
Kevin Mountford of comparison website MoneySupermarket.com said: "There are many good purchase cards available which offer 0% introductory rates [lasting] well over a year, which could be a worthwhile option for those looking for flexibility and an efficient way to spread the cost of the holiday."
Top deals include a 0% purchase card from Tesco Bank, which gives holders 18 months of interest-free purchases, as well as one Tesco Clubcard point for every £4 spent. It then reverts to an APR (annual percentage rate) of 16.9%.
For customers who have a lot of debt to transfer, and are able to clear it relatively quickly, the message is to plump for a low balance transfer fee card.
GoCompare highlights the Halifax All in One Online Mastercard and the Lloyds Bank Platinum Transfer Mastercard as good deals. Both have 0% interest offers on balance transfers for 15 months for an ultra-low transfer fee of 0.8%, with APRs of 17.9%. The Halifax card offers 0% on purchases for 15 months; Lloyds offers three months.
The longest deal on the market is offered by Barclaycard, which has extended the 0% interest period on its Platinum Visa card to 30 months.
While this deal offers the equivalent of a two-and-half-year interest-free loan, it does come with a balance transfer fee of 2.9%. Depending on the balance this could amount to a chunky fee.
Moreover, the card holder will initially pay 4.9% on the balance transfer, which will then be reduced to 2.9% by refund. The card also offers a 0% interest offer on purchases for six months, after which the APR reverts to 18.9%.
GoCompare's Matt Sanders said: "Timing your application for one of the long 0% balance transfer cards - you usually have to transfer a balance within a 90-day period - to include the New Year means that you can transfer a balance from a card you used over the Christmas period and pay no interest on that debt for a few months.
"Or you could apply for a 0% purchase card and spend on that, knowing that you have no interest to pay for over a year in most cases.
"But with all of these cards it's important that you plan a way to pay off the balance. A 0% introductory offer sounds great, but it is still debt that will have to be paid off."
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