With Christmas just around the corner many people have already started purchasing their Christmas gifts and items, and despite the global credit crunch and the difficult financial climate many people have indicated that they will still be spending around the same amount that they did last year on Christmas.
Much of the spending that will take place in the run up to Christmas is likely to be on existing credit cards, as consumers will find it very difficult to get any other finance in the current financial climate and many do not have savings to throw at Christmas this year given the increase in living costs and bills. In fact, officials from the Association for Payment Clearing Services (APACS) estimate that around eleven billions will be spent on credit cards in the run up to Christmas.
If you have a credit card that charges high rates of interest but you find that using your credit card is your only option at present, then it is worth considering the fact that by transferring your balance to a
0% balance transfer credit card once the festive season is over could prove very lucrative, as it could save you a fortune in interest, making Christmas far more affordable.
For those of you that do decide to take this option there are a couple of things that you need to bear in mind. Firstly, recent reports have shown that
the number of 0% balance transfer deals has been falling, and this makes it more important to do your research as early as possible and to
compare credit cards and apply for your card early on to avoid disappointment.
Another thing to remember is that you should use the new credit card for balance transfers only and not to make purchases. One industry official has advised: "It's a good idea to be prepared for January by taking out a good credit card deal. But don't use it for purchases because your payments will always go towards the cheapest debt first. Though some cards with 0% deals extend them to purchases, this is usually only for the first few months."
