|
Whether you love it or hate it, there's no getting away from the fact that Christmas is once again just around the corner.
As well as being a time to spend some quality time with family, friends and relations, for many people, it's almost certainly the most expensive time of the year.
In the run up to December 25th it's often necessary to spend a lot of money in a short space of time which can really put a strain on the family budget. At these times we often reach for our 'flexible friend' - and then spend the rest of the following year struggling to repay the debt and regretting our generosity. However, credit cards really can help to ease the burden and spread the cost of Christmas and, if used sensibly, and in moderation there is no reason to fear using them.
But before you jump for joy and rush off on a mission to 'spend, spend, spend' just take a few minutes to read our guide below. There are some great ideas here to help you finance the cost of Christmas without it costing you a penny in interest or if you're one of the lucky few with money to spare then why not earn a little extra whilst you shop - either way we show you how!
Spread the cost of Christmas - it costs you nothing
Whilst 0% credit card deals for balance transfers are extremely popular and have saved people hundreds and even thousands of pounds in interest charges over the years, far fewer people take advantage of 0% incentives that are available on purchases.
One card worth considering for your Christmas spending is the Capital One Low Rate Balance Transfer Platinum card (Typical APR 15.9% variable) which offers 0% interest until May 2009 on purchases which means that as long as you clear the balance before May next year you can finance all your Christmas purchases without it costing you a penny in interest. As an added benefit the card also has a low rate of 5.5% fixed until January 2011 on balance transfers so if you have balances on other cards you could transfer them to this card and take advantage of this lower rate. Click here for more information.
Alternatively if you are someone who is unlikely to clear their balance by next May then you might want to consider a card that offers a low purchase rate that will keep your interest costs down in the longer term. Again, Capital One provides a Low Rate Platinum card (Typical APR 8.5% variable) on which the rate is fixed at 8.5% on purchases and balance transfers until August 2012 giving you a low rate for 3 years and 9 months. Click here for more information.
Pick the right plastic and get cash back on your Christmas shopping
Getting paid for doing the Christmas shopping sounds too good to be true, but it's not; there are a range of credit cards out there that will give you something back in return for your spending.
The pick of the bunch at the moment is the Platinum cashback credit card from American Express (Typical APR 18.9% variable) where you can earn 5% cashback (maximum £200) for the first three months. At the end of the introductory period, you'll earn 0.5% on your first £3,500 of spending, then it steps up to 1% until you reach £10,000 at which stage it increases to 1.5% on everything you buy. To find out more, click here.
However, one word of caution - these cards aren't right for everyone. Unless you clear the balance in full each month you will be charged interest on your purchases which is likely to more than outweigh any cash back you receive. If you roll over a balance each month then a 0% interest card is definitely your best option.
Added protection for your purchases – and it doesn't cost you a penny
You sometimes hear of people paying for goods that never arrive, others get into a long and drawn out dispute over items damaged in transit and in the worst cases, some customers lose their money because the retailer goes out of business. By using your credit card to pay for purchases of between £100 and £30,000 (wow - that would be some Christmas present!), section 75 of the Consumer Credit Act makes your credit card provider and the retailer jointly liable for faulty purchases, goods not as described and in cases where the supplier goes bust.
You don't receive this protection when paying by debit card, so it's probably worth giving a little thought to which card you select when making those £100 plus purchases.
So make sure you're armed with the right credit card(s) this Christmas and enjoy a safer and more rewarding shopping experience.
|
