Lighten the load at Christmas

How 0% purchase credit cards can spread your Christmas costs

Christmas is coming, the goose is getting fat and you are probably worried about how you are going to pay off the seasonal spend-a-thon in the cold gloom of late January.

Wouldn't it be wonderful to spread the cost of your December retail madness and pay off a little bit in January, a smidgen in February, a touch more in March, right up to September while paying no interest whatsoever?

Well, with one of the many 0% purchase rate credit cards available on the market today it is not only possible - it's simple to do and it won't cost you a penny!

By taking out a 0% purchase credit card now, you'll effectively bag yourself a short term, interest free loan to spend this Christmas and pay back in instalments throughout next year.

What is a 0% purchase credit card?

A 0% purchase credit card lets you spend freely on the card for an introductory period without charging you any interest whatsoever. These introductory periods can last between 3 to 10 months, depending on the card you choose.

They are an ideal way to buy now and pay later without having to pay any interest charges on your purchases, allowing you to pay off the balance slowly.

It sounds too good to be true; there must be a catch...

The only catch is self-discipline.

Credit card companies thrive off the majority of us who neglect to repay our balance before the 0% introductory period expires - leaving our debt to languish in the realms of high-interest-hell.

Lyndsey Burton, director of the consumer comparison service ChooseMoney.co.uk says: "Make use of the 0% period on these credit cards, but use it wisely: repaying just the minimum amount each month won’t clear your Christmas spending. Repay as much as you can comfortably afford to each month so that you can clear your balance in full before the standard interest rate kicks in."

The most important thing to remember is to always make at least the minimum monthly payment (usually 2% - 3% of the outstanding balance) - if you don't you may find your promotional rate disappears quicker than the box of after-dinner Christmas chocolates.

A vital point to remember is to never use these credit cards for withdrawing cash - and that includes getting 'cash back' at the supermarket and buying foreign currency or traveller's cheques, as well as ATM withdrawals.

Using any 0% introductory rate credit card for a cash transaction will not only land you with handling fees and a high rate of interest on the cash balance, but you'll also be unable to repay it until you have first repaid all your other card transactions.

Using these credit card offers sensibly will allow you to fully enjoy the 0% rates and you will avoid charges and interest and might even improve your credit rating.

You'll have to act fast though. While you can apply online for a 0% purchase credit card, the application processing may take a week or two. Leave it too long and you'll be left to pay for Christmas the expensive way.

Not worth the hassle? Think again

Many of us choose to steer clear of credit cards altogether - or at least approach with caution - which is understandable considering the escalating problem of consumer debt in Britain.

But before you think you can manage without one of these 0% purchase credit cards it's worth considering the charges for running into your overdraft or racking up a debt on a store card. £500 spent on a store card (at 29.9% APR) this Christmas will sock you with around £130 in interest charges over the next 12 months.

Spending on a 0% purchase rate credit card instead will not only save you that amount, but allow you to make more manageable monthly payments and really lighten the load at Christmas.

It'll also make February seem a lot less gloomy!

How to choose the right 0% purchase credit card

Choosing the right credit card can easily become overwhelming and bewildering.

Fortunately, ChooseMoney.co.uk are now on hand to help you navigate through the credit card minefield with our powerful 'Find a Card' tool that calculates the best card for you based on your own unique circumstances.

Compare 0% purchase credit cards