Borrowing tips to meet the cost of Christmas

A 0% purchases credit card could offer ideal assistance to those looking to borrow in the build-up to Christmas.

Britons searching for a helping hand when it comes to money this Christmas may want to consider 0% credit card deals, one writer claims.

Serena Cowdy notes that for those looking to borrow in order to meet various expenses over the festive period a credit card that offers a 0% purchases feature may be the "cheapest and best" option.

Writing in a lovemoney.com article, she points out that such credit offers are effectively "a short-term interest-free loan".

However, those looking to compare accounts in order to obtain such a product are advised that they only tend to be available to those with a "squeaky clean credit record" and only want to borrow a relatively small amount of money.

Ms Cowdy goes on to give particular praise to the Tesco Clubcard credit card, which offers 0% purchases for a 12-month period. After this point, however, the interest payable rises to a typical rate of 16.9 per cent.

Indeed, the writer is keen to point out that those who are unable to clear off their balance by the time the 0% purchases offer expires will be liable to pay interest at a rate that is "almost certainly going to be far higher than that charged by a personal loan".

However, those assessing their borrowing options in the build-up to December 25th may also want to consider seeking out a current account that offers a "decent 0% overdraft facility". And while she highlights the Alliance & Leicester Premier Direct current account's 12-month interest-free overdraft facility for up to £2,000 - in a similar manner to 0% purchases credit cards - people need to clear off their debt by the time the special offer runs out to avoid paying significant sums in interest charges and fees.

Such a product could be particularly helpful for parents as a recent AXA study revealed mums and dads will spend more than £300 on filling their child's Christmas stockings with gifts.