Top credit cards for spreading the cost of Christmas

Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel

Top credit cards for spreading the cost of Christmas

Credit cards are a handy method to help cover the cost of Christmas, so long as the debt does not linger. Moneyfactscompare.co.uk highlights the latest competition on 0% balance transfer credit cards and why shoppers should make a firm repayment plan to clear debts faster.

Top credit cards for spreading the cost of Christmas

Consumers hoping to shift their credit card debts to an interest-free balance transfer offer to spread the cost can find market-leading deals at 35 months, available from HSBC, Barclaycard and TSB, all of which improved their terms over the past three months.
Shoppers using a typical credit card charging 24.9% APR could have debts hanging overhead if they fail to set up a fixed repayment. A debt of £300 would take over a year to pay off based on a fixed repayment of £20 and would cost £55 in interest. Increasing this payment to £50 per month would clear the debt in seven months, and more than halve the interest charged (£21).
Using an overdraft to cover costs is an expensive option; many of the biggest brands charge almost 40% EAR. One way of clearing that debt is to make a 0% money transfer from a credit card. A handful of providers offer this option, where for a small fee, the interest-free term allows a few months to repay.
According to a UK study by YouGov, a third of consumers (33%) are worried about the impact of Christmas on their personal finances, rising to 42% for households with incomes under £30,000. Consumers expect they will spend around £300 on presents and £150 on festive food and drink.
A study from Tesco Bank revealed that nearly one in three consumers (29%) believe they will end 2025 in debt, with credit cards the most common form of unsecured debt.

Consumers hoping to shift their credit card debts to an interest-free balance transfer offer to spread the cost can find market-leading deals at 35 months, available from HSBC, Barclaycard and TSB, all of which improved their terms over the past three months.
Shoppers using a typical credit card charging 24.9% APR could have debts hanging overhead if they fail to set up a fixed repayment. A debt of £300 would take over a year to pay off based on a fixed repayment of £20 and would cost £55 in interest. Increasing this payment to £50 per month would clear the debt in seven months, and more than halve the interest charged (£21).
Using an overdraft to cover costs is an expensive option; many of the biggest brands charge almost 40% EAR. One way of clearing that debt is to make a 0% money transfer from a credit card. A handful of providers offer this option, where for a small fee, the interest-free term allows a few months to repay.
According to a UK study by YouGov, a third of consumers (33%) are worried about the impact of Christmas on their personal finances, rising to 42% for households with incomes under £30,000. Consumers expect they will spend around £300 on presents and £150 on festive food and drink.
A study from Tesco Bank revealed that nearly one in three consumers (29%) believe they will end 2025 in debt, with credit cards the most common form of unsecured debt.

Top 0% introductory balance transfer cards by longest term
Card name	0% Introductory balance transfer offer and BT fee
HSBC Balance Transfer Credit Card Visa	35 months – 3.19% BT fee, min £5
Barclaycard Platinum 35 Month Balance Transfer Visa	35 months – 3.45% BT fee
TSB Platinum Balance Transfer Card Mastercard	35 months – 3.49% BT fee
Virgin Money 34 Month Balance Transfer Credit Card Mastercard	34 months – 2.95% BT fee
MBNA Limited Long 0% Balance Transfer Credit Card Visa	34 months – 2.99% BT fee
NatWest Longer Balance Transfer Credit Card Mastercard	34 months – 3.15% BT fee
Top deals exclude cards with an annual card fee. BT = balance transfer. Source: Moneyfactscompare.co.uk

Top 0% introductory balance transfer cards by longest term
Card name	0% Introductory balance transfer offer and BT fee
HSBC Balance Transfer Credit Card Visa	35 months – 3.19% BT fee, min £5
Barclaycard Platinum 35 Month Balance Transfer Visa	35 months – 3.45% BT fee
TSB Platinum Balance Transfer Card Mastercard	35 months – 3.49% BT fee
Virgin Money 34 Month Balance Transfer Credit Card Mastercard	34 months – 2.95% BT fee
MBNA Limited Long 0% Balance Transfer Credit Card Visa	34 months – 2.99% BT fee
NatWest Longer Balance Transfer Credit Card Mastercard	34 months – 3.15% BT fee
Top deals exclude cards with an annual card fee. BT = balance transfer. Source: Moneyfactscompare.co.uk

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“The tantalising sales in the run-up to Christmas can help consumers make some significant savings and using a credit card is an obvious choice due to their convenience and protection. However, it can take consumers a few months to pay back large spends, so it’s wise to consider moving the debt to an interest-free balance transfer credit card. It’s well timed then to see the market-leading term on 0% balance transfer cards to rise to 35 months, thanks to competition between HSBC, Barclaycard and TSB over the last three months.

“Credit cards can be the ideal way to cover costs, and they protect consumers from being ripped off, as any goods or services not received which are valued over £100 up to £30,000 are covered under section 75 of the Consumer Credit Act. Those spenders who don’t have an existing credit card or a savings pot in place to cover Christmas could dip into their overdraft, but this is costly as the biggest brands charge almost 40% EAR. If this is unavoidable, applying for a credit card to make a money transfer could be sensible option. There are a handful of providers that have interest-free money transfer deals, ideal to clear overdraft debt and spread the cost for a few months, subject to paying an upfront fee. The cost of Christmas presents is estimated to be around £300, according to YouGov, but this does not include festive food and drinks, so it’s easy to see how the festive spend can get out of hand and make people turn to short-term credit.

“Consumers would be wise to check their credit score before they apply for a credit card and fix any discrepancies they may find. It is also unwise to apply for multiple credit cards in quick succession, as this could appear as though someone is in financial distress. Taking time to compare different interest-free offers before applying is a good idea, especially to carefully examine any upfront fees. Upfront fees get added to the debt that’s moved across via a balance transfer, so that’s worth keeping in mind when setting up the repayment. Credit cards will have a minimum repayment in place, but it’s much wiser to change this to a fixed repayment to clear the debt sooner, particularly within the interest-free term.”

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

For more information about us please see our key facts.

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Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.

Adam French Head of News & Communications

01603 476154

Email Adam

Rachel Springall Press Officer / Finance Expert

01603 476210

Email Rachel

Caitlyn Eastell Press & PR Executive