Cut the cost of your festive debt

IF YOU overspent over the festive period, consider applying for an interest-free credit card to help reduce the cost of your debt.

Currently, the longest 0 pc balance transfer offer is for 32 months with Post Office.

By paying no interest, all of your repayments will go towards your debt, helping to clear your balance faster. There is a 2 pc fee — which works out at £50 on a typical £2,500 balance.

If you can repay your debt quicker, a fee-free deal may work out as better value.

The longest 0 pc balance transfer deal without a fee is 26 months with Sainsbury’s Bank. Tesco Bank has a 22-month fee-free deal and Halifax, 20 months.

Only those with the strongest credit ratings will be accepted for the very best deals.

Be wary about making too many applications in quick succession if you are rejected as it can make you look desperate and damage your score further. Some banks may accept you for a card but offer a shorter deal than advertised.

Remember, if you fail to clear your debt within the 0 pc period your rate will jump — typically to around 20 pc.