Pay zero interest on your Christmas spending

Pay zero interest on your Xmas spending by shifting the debt to a new credit card

Balance transfer deals are the cheapest they’ve been in a decade

Borrowers who are struggling to pay off their hefty Christmas credit card bills should consider .

Balance transfer deals are the cheapest they’ve been in a decade, according to figures from personal finance data provider Moneyfacts.

The average fee to move a balance is now 2.03 per cent, down from 2.29 per cent a year ago.

The longest 0 per cent balance transfer deal is currently 38 months with Barclaycard, giving you more than three years to get on top of your debt while saving on those interest charges.

There is a 1.4 per cent fee — so, £35 on a typical £2,500 balance. MBNA also has a 38-month offer with a 1.44 per cent fee. 

If you don’t need quite as long to clear your balance, Lloyds has a 33-month deal with an even lower fee at 0.57 per cent, or £14.25. Some banks reserve their longest 0 per cent offers for those with a strong credit rating.

It means that you may get a shorter deal than the one you applied for or you could be rejected altogether.

Be sure to repay your debt within the offer period or switch your balance to another deal when it ends or you’ll pay interest at around 20 per cent. And beware, if you miss any payments your bank may cancel your deal early.

Borrowers tend to remain indebted for longer than was previously thought, Bank of England research has found.

It says 89 per cent of outstanding consumer debt in November 2016 was held by people who also owed debt two years earlier.