Brits are set to spend an eye-watering £18 billion celebrating the festive season this year, with each of us forking out an average of £397.
This is according to our latest research which also revealed that 30% of those celebrating Christmas are planning to borrow money to cover the cost.
But whatever you might need a cash injection for, the good news is that thanks to increased competition and low interest rates, borrowing is now relatively cheap.
Here’s a look at some of your options…
0% purchase credit cards
If you’re relying on a credit card to cover your Christmas spending or other purchases, using one of the leading 0% purchase cards will give you more time to pay off the balance without racking up interest on what you owe.
The new Post Office Money Matched credit card offers a market leading 0% on purchases for 27 months – although you must spend on the card within three months to qualify.
Make sure you repay the debt before the interest-free period expires, or you’ll have to pay a representative rate of 18.9% APR (variable)*. You can find out more about this card here.
Other competitive cards for spending include Clydesdale and Yorkshire Bank’s Gold MasterCards, which offer 0% on purchases for 26 months. But be aware you can’t manage your account online unless you’re an existing customer and registered for internet banking.
Alternatively, the Sainsbury’s Bank Nectar Purchase credit card offers 25 months’ interest-free purchases and you’ll also earn Nectar points as you spend.
If you apply for your card before December 29, you'll earn four Nectar points for every £1 spent on Sainsbury’s shopping and fuel for the first three months, and two Nectar points for every £1 spent after that. You'll also earn one Nectar point for every £5 spent elsewhere.
Once the 0% promotional purchase offers end on all of these cards, you'll pay a representative rate of 18.9% APR (variable)*.