While debt of this kind can be quick to rack up, it often takes much longer to repay.
Those on standard credit card deals will therefore often end up paying double-digit interest on the debts they have built up over Christmas for months afterwards - adding to the cost of their celebrations and presents.
Fortunately for those whose cards have taken a battering over the festive period, there are several balance transfer deals available just now that should allow them to pay off the debts at a much cheaper rate.
Peter Harrison, credit card expert at moneysupermarket.com, said: "The majority of people with large credit card debts would be better off if they switched to one of the balance transfer deals available. There are a number of deals offering 0% on balance transfers for up to 16 months."
So what are the best deals on the market at the moment and how do you transfer a credit card balance?
What balance transfer deals are available?
The Virgin Credit Card is currently offering the market-leading balance transfer deal. New customers don't pay any interest on balance transfers for the first 16 months, after which you'll pay 18.6%. Anyone transferring a balance will also pay a 2.98% fee.
If you are a NatWest or Royal Bank of Scotland current account holder, another option is to take advantage of the banking group's Platinum card offers.
Both cards offer 0% for the first 15 months on balance transfers and have a standard rate of 16.9%. At 2.9%, the balance transfer fee is slightly lower than Virgin's.
Barclaycard and MBNA's Platinum cards are also worth a look. Barclaycard is offering new customers interest-free balance transfers until January 2011, as well as three months at 0% for purchases.
Its balance transfer fee is 2.5% of the amount to be switched across and the standard interest rate is 14.9%.
MBNA's Platinum Card, on the other hand, has a standard rate of 15.9%, a balance transfer fee of 2.9% and offers new customers 13 months interest free on the amount transferred.
How do I transfer my balance?
When looking to transfer a credit card balance, you must first apply for the card that best suits your needs.
Card companies' lending criteria is tighter now than it used to be, and making lots of card applications can have a detrimental impact on your credit rating.
That means it isn't a good idea to apply for lots of different cards - especially if you suspect your credit score will mean you're rejected.
You can usually apply for cards both over the phone and online.
If your application is accepted, you must then contact your new card company to arrange the transfer of debt built up on your current card.
This can often be done over the phone, as well as online, and you can also transfer overdraft debts, should you wish.
Many of the best balance transfer deals require you to do this within the first few months and delaying will only cost you more in interest anyway, so do it as soon as you can.
Once the transfer has been arranged, you must continue to make payments on the debt until the money has been moved to ensure you do not incur any penalty charges.
If you're planning to use your new card for shopping as well, you need to be really careful. Any payments you make to the card will almost always be put towards the cheapest debt - in other words, the interest-free balance transfer.
Meanwhile your new debt racks up interest at the standard rate and you'd have to clear the entire card to repay it.
Anyone trying to clear their debt should therefore avoid spending on their balance transfer card unless it offers a good interest-free period on purchases and they are confident they would clear the whole balance before they began to be charged.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct
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