Time to play the cards right

THE sales may be over, but some of us will be left with only too clear a reminder of Christmas 2009 in the form of lingering credit card bills. 

High Street shops slashed their prices by up to 70 per cent during the sales, tempting many to splash out thinking they were saving money.

The average interest rate on credit card balances rose in December to 15.28 per cent, so unless you can pay off the balance quickly you could end up paying over the odds for your sale bargains.

If you can, you should pay off more than the minimum payment each month, which will save you money and reduce the debt faster.

Of course, credit cards are a useful tool, and many offer extra benefits such as reward points, but don't be seduced into debt by "free" money.

If you have overspent, the best thing to do is juggle those cards. For a small fee many credit card companies will offer you a new card with zero per cent interest on balance transfers.

This allows you to pay off what you owe more quickly instead of covering little more than the interest.