Using your credit card to spread out the cost of Christmas

23 November2010

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Christmas may come but once a year, but the financial hangover can last a lot longer. For many it`s by far the most expensive date on the calendar, and it`s often unrealistic to expect to cover all the costs up front.

So how can you spread out the cost? Some people save in advance, but this takes time and isn`t always an option. One alternative could be to find a 0% interest credit card that can help you spread out the cost without worrying about interest building up.

Introduction to 0% credit cards

A 0% interest credit card doesn`t charge any interest on purchases for a limited time (often around 12 months).

As long as you make the required minimum monthly payment (a small percentage of the overall balance), you can rest assured that the remaining balance won`t grow until the interest-free period is over.

Of course, to avoid paying any interest at all, you`ll have to clear the debt before the interest-free period runs out (or you could try switching to another 0% interest card).

How can it help with Christmas spending?

If you get a 0% interest credit card now, you`ll be able to start using it for your Christmas spending as soon as it`s in your wallet.

Once New Year arrives and your Christmas spending is over, you`ll be able to take stock - and start making your repayments. As long as you`ve been careful with your spending and not borrowed more than you`re sure you can comfortably repay, you should have time to pay everything back before you start paying interest on the debt.

It`s always best to have a plan for your repayments. For example, if you have 10 more months interest-free, you could divide the remaining balance into 10 equal monthly payments. Just make sure that you stick to your plans (and don`t spend any more), or else you could run into trouble when the interest-free period expires.

Compare the best 0% interest credit cards with our free comparison table today.

Review our latest credit card best-buys

Product	Transfer rate & period	New Purchases rate & period	Representative APR
Tesco Bank Clubcard Credit Card for purchases	0% 9 mths 2.9% Fee	0% 16 mths	16.9% (variable)
	Representative example: With this credit card the representative APR is 16.9% (variable) based on an interest rate of 16.9% (variable), transfer fees of 2.9% and a credit limit of £1200.
M&S Credit Card	0% 12 mths 2.9% Fee	0% 15 mths	16.9% (variable)
	Representative example: With this credit card the representative APR is 16.9% (variable) based on an interest rate of 16.9% (variable), transfer fees of 2.9% and a credit limit of £1200.
Halifax Online All In One	0% 15 mths 3% Fee	0% 15 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 3% and a credit limit of £1200.
Royal Bank of Scotland YourPoints World MasterCard	0% 9 mths 1.5% Fee	0% 15 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 1.5% and a credit limit of £1200.
NatWest YourPoints World MasterCard	0% 9 mths 1.5% Fee	0% 15 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 1.5% and a credit limit of £1200.
Barclaycard Platinum with Purchase	0% 14 mths 2.9% Fee	0% 14 mths	18.9% (variable)
	Representative example: With this credit card the representative APR is 18.9% (variable) based on an interest rate of 18.9% (variable), transfer fees of 2.9% and a credit limit of £1200.
Bank of Scotland Platinum Purchase Card	0% 13 mths 3% Fee	0% 13 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 3% and a credit limit of £1200.
Lloyds TSB Platinum Purchase Card	0% 13 mths 3% Fee	0% 13 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 3% and a credit limit of £1200.
American Express Platinum Cashback Purchase Credit Card	- - -	0% 13 mths	18.7% (variable)
	Representative example: With this credit card the representative APR is 18.7% (variable) based on an interest rate of 14% (variable), annual fees of £25 and a credit limit of £1200.
We provide a representative range of products on competitive terms and do not act exclusively for any credit provider. Credit limits may vary depending on your circumstances.

Tags: credit card, Christmas, Christmas on credit card, Christmas debt, Christmas credit card debt, low interest credit card