Consumers seek the best credit cards in time for Christmas

Many consumers will see the Christmas pinch magnified this year as the UK continues its struggle to escape recession.

While irresponsible lending through credit cards and other lending products contributed to the credit crunch, credit cards should not be ruled out as a tool for helping consumers to get by, as when used properly they can help to ease the pressure that comes with Christmas.

One option is to take advantage of the interest free durations offered on most credit cards, allowing you to spread your annual Christmas spend over a longer period of time, without paying a penny in interest for borrowing.

There are lots of credit cards to choose from, so finding the best card can sometimes seem confusing.

The two most attractive features are 0% periods on purchases and balance transfers. If you plan to use the card for purchases, you should look out for the longest 0% purchases duration, and if you want to transfer existing debt in order to avoid paying interest, search for the longest 0% balance transfer period.

It is also possible to mix the two, allowing you to avoid paying interest on debt transferred onto the card, as well as on the purchases you make using the card. The Halifax all-in-one and the RBS all-in-one credit cards are each offering 9 months 0% on both features, so either would be ideal if this is what you are looking for.

If you simply want a card with the longest 0% purchases duration then consider the BT 0% Purchases Card, offering a 10 month interest free duration.

Alternatively, if you wish to transfer an existing balance while paying no interest for the longest duration, check out the Virgin credit card, with a market beating 16 months 0% on balance transfers.

Whichever card you choose, the golden rule you must always stick to is to always ensure you pay off at least the minimum amount each month, and to clear your balance before the 0% duration expires to avoid paying any interest.

Something else to remember is that credit card companies charge a transfer fee when moving a balance onto a card (usually around 3%), so bear this in mind when looking to make use of this feature.

If you are fortunate enough to be in the position to clear your balance in full each month, then you don't need to worry about 0% offers as you won't pay any interest. However, there are still a number of cards offering rewards every time you use them for you purchases.

Reward credit cards offer special benefits such as cash back, or points earned as the card is used that can be exchanged for goods and services. If used properly, these cards effectively reward you for making your normal purchases.

There are several types of credit card reward schemes to choose from, including air miles, gift vouchers, store vouchers and other goods and services. When used correctly, these cards than be very rewarding. An effective way of making the most of these cards is by using them for as many purchases as you can. These include things like grocery shopping, bills, fuel etc. This way you will be rewarded for things you need to buy anyway.

It can take up to a month to process a credit card application so now is the time to apply to be sure it arrives in time for your Christmas shop.