Find yourself a Christmas card cracker

With Christmas fast approaching, and over half of Brits worried about how they are going to fund this year's festive spending, moneysupermarket.com looks at the different credit card options available for those considering borrowing.

Hannah Mercedes-Skenfield, credit card expert at moneysupermarket.com, said; "Christmas is an expensive time of year and as a result many consumers will be thinking about taking out a credit card in order to pay for their festive spending. It is vitally important that people think about how they are funding their spending and find the best option to fit their needs. However, you will need to be quick, as it can take a few weeks to complete the application process and receive the card."

Best Purchase Credit Cards

If you're looking to spread the cost of Christmas over a period of time then a 0 per cent purchase card is the best option. The Tesco Clubcard Credit Card is the current market leading card for purchases offering a 13-month interest-free period and also gives customers one Tesco Clubcard point for every £4 spent.

If you are looking for a card which can be used for purchases and balance transfers then Barclaycard's Platinum Credit Card offers 0 per cent on purchases and balance transfers for twelve months, meaning you can transfer and pay off your existing debt and purchase gifts at zero percent on the same card. Ensure you pay off the debt before the 0 per cent offer ends as the rate will then switch to a much higher standard rate of 18.9 per cent.

Cashback & Reward Credit Cards

Consumers who will be paying off their balance every month, should consider using a cashback or rewards credit card which gives you a cash bonus or reward points every time you spend. The American Express Platinum Cashback card pays five per cent cashback for the first three months up to a maximum of £100 and up to 1.25 per cent for longer term spending. Using a cashback credit card means Christmas spending can be rewarding, but you must pay off the full balance each month otherwise the interest will outweigh any reward.

Best Balance Transfer Credit Cards

If you have any existing credit card debts, consider taking out a balance transfer card which could potentially free up your finances for Christmas. Virgin Money has just launched the new Virgin Credit Card offering 0 per cent interest on balance transfers for a market leading 16 months. Switching a £2,500 balance from an existing credit card at a rate of 18.9 per cent to the Virgin Credit Card would save £464.24 in interest over the 16 month period. Similar balance transfer cards from MBNA and Yorkshire and Clydesdale Bank's are also offering 0 per cent for sixteen months giving flexibility to people who have existing debt.

Alternatively, if you don't think you will be able to pay off your debts within the 16 month interest free period, then a low rate credit card could be an alternative option.

Hannah Mercedes-Skenfield, added: "The decision to use a credit card should never be taken lightly and consumers should aim to pay the balance off as quickly as possible otherwise you may find you are still paying for this Christmas in December 2011. A credit card is a great and useful product if used correctly, but they are only really suitable for organised and disciplined borrowers. Use one incorrectly and you could end up paying through the nose for your borrowing.

"The golden rule with any credit card product is to set up a direct debit for at least the minimum payment as soon as you set up your account, as missed payments will lead to you losing your promotional offer. Using a credit card for cash is a no-no as you will be charged interest at a much higher rate from the day of the transaction.

"When taking out a card, borrowers really need to understand how their card works, so they are not caught out by using it incorrectly. Doing your homework before you apply will make sure you are not looking for alternative products in a few months time."