How Choosing the Right Card Could Help You Make It Through Christmas

Britons are struggling to cope with the rising cost of living, and thus are continuing to accumulate the highest levels of debt seen since that seen at the height of the recession, back in 2009. Official figures have revealed that households across the country have collectively amassed a massive £208.6bn in credit card debt, bank overdrafts and other loans. This is equivalent to £9,070 per household in the country. To put this into perspective, if we were to take out debts from holding a mortgage, household debts have risen by more than £5bn in the last year, and by £629m in the last month alone. It has become more evident that households must resort to using credit cards and loans in an attempt to cover their monthly spending needs. A task that has become increasingly difficult due to rising prices for food and utilities as well as both higher inflation and VAT. And with the Christmas season on the horizon, what can people actually do to manage their debt and keep their heads above water at this festive time of the year? One solution that is worth looking at is 0% balance transfer or low-rate credit cards. With disposable income falling, on average, 8 per cent for every household, it is important to find credit card deals that offer favourable rates on spending in the lead up to the festive season. One of the most competitive features of credit cards that are available on the market right now are the lengthy deals associated with 0% balance transfers – with many providers offering 0% for 20 months or more on transfers. However, with the Christmas shopping period fast approaching, it may be worthwhile for consumers to look into 0% deals on purchases. With these kinds of cards you can get 12 months or more with 0% on purchases. Supermarket cards also have an added incentive in a season where most people will be buying more groceries in preparation for Christmas Dinner and having the children off school and snacking all day. With these cards you not only gain the offers available on standard credit cards, but also gain store points every time you spend on them. One other option would be the often overlooked, cashback credit card, which offers rewards with money back when using it to purchase things.