Yahoo Finance 
Best ways to pay off Christmas debt
Christmas is over for another year. The mince pies have been eaten, the presents unwrapped and all of that lovely Christmas bubbly has been polished off.
Yes, it's all a bit of an anticlimax. But if the thought of how much you've spent over the festive period is now starting to give you a headache, take a look at how a 0% card could help.
If you have credit card debts
If your spending is on a credit card and you're going to be hit by interest charges, see if you can shift it to a 0% balance transfer credit card.
With introductory interest-free periods of up to 30 months on offer, this could give you some vital breathing space to pay off your debt.
These cards aren't completely free though. You'll be charged a balance transfer fee for moving your debt over. This is a percentage of the debt you're transferring. So, for example, if you're transferring £2,000-worth to the Barclaycard 30-Month Platinum card, which has a balance transfer fee of 2.89%, it will cost you £57.80.
Here are the 0% cards with the longest interest-free periods:
Credit card | 0% period | Balance transfer fee | Fee paid on £2,000 transfer | Representative APR after 0% period ends |
30 months | 2.89% | £57.80 | 18.9% | |
29 months | 2.49% | £49.80 | 18.9% | |
29 months | 2.89% | £57.80 | 18.9% | |
29 months | 2.9% | £58 | 18.9% | |
Santander Balance Transfer | 29 months | 3% | £60 | 18.9% |
28 months | 2.45% | £49 | 18.9% | |
28 months | 2.99% | £59.80 | 18.9% | |
28 months | 2.99% | £59.80 | 18.9% |
[Compare the cards with the longest 0% period]
However, if you think you can pay off your debt over a shorter period of time, you could get a card with a far lower balance transfer fee.
Here are the cards with the cheapest balance transfer fees right now:
Credit card | 0% period | Balance transfer fee | Fee paid on £2,000 transfer | Representative APR after 0% period ends |
12 months | 0.75% | £15 | 16.9% | |
12 months | 0.79% | £15.80 | 19.9% | |
15 months | 0.8% | £16 | 17.9% | |
Lloyds Bank 15-Month Online Platinum Balance Transfer MasterCard | 15 months | 0.8% | £16 | 17.9% |
TSB 15-Month Online Platinum Balance Transfer MasterCard | 15 months | 0.8% | £16 | 17.9% |
Santander Low Balance Transfer Fee | 17 months | 0.9% | £18 | 18.9% |
24 months | 1.5% | £30 | 17.9% | |
24 months | 1.5% | £30 | 17.9% | |
TSB Platinum 24-Month | 24 months | 1.5% | £30 | 17.9% |
[Compare the cards with the lowest balance transfer fees]
If you have an overdraft
If you've gone into the red on your current account, then there are some credit cards that can help. They are 0% balance transfer credit cards that also offer what's known as a money transfer.
A money transfer allows to borrow money to put into your bank account for an introductory interest-free period. As with a 0% balance transfer, you'll be charged a percentage of your debt for the privilege. This is pretty much universally 4% of the amount you're borrowing.
Credit card | 0% period | Representative APR after 0% period ends |
29 months | 18.9% | |
27 months | 18.9% | |
26 months | 17.9% | |
18 months | 13.9% | |
AA Balance Transfer | 16 months | 17.9% |
You could also try switching to another current account. The Nationwide FlexDirect account offers a 12-month fee-free overdraft, although the size of your overdraft will depend on your credit rating.
If you're in serious debt
If your bills are mounting up and you feel like you can no longer cope, don't panic. Free, confidential help is available from a range of sources, including Step Change, National Debtline and Citizens Advice.
