Many of us spend the year haunted by the ghost of Christmas past - festive purchases have a habit of hanging around on your credit card statement well into the New Year. As we face our burgeoning credit card statements it is well worth considering changing credit card providers, if you are struggling to keep up with the payments and interest charges on your present credit card.



There appears to be a huge choice of credit cards, but most cards belong to one of six main payment-card systems, these are:

MasterCard,Visa, American Express, Diners Club, JCB International and Maestro. Most credit card providers don\'t charge an annual fee, but check this and the length of the period between being sent the bill and having to pay, before any agreement.





Using credit cards to your advantage

There are some great deals about now with many card issuers offering very low, or in some cases zero interest rates on balance transfers. Check carefully that there are no fees associated with the transfer.

It is important to realise that these great offers are usually only set for a 6 months period, so it makes sense to pay off the debt before you become subject to a high interest monthly payment again. The main thing to remember is to keep paying off the debt, even with 0% interest don\'t be tempted to opt for the minimum monthly payment. The sooner you clear your credit card debt the sooner you will be able to use the card as a shopping convenience, instead of it being a financial millstone around your neck. If you settle your statement in full every month it should cost you nothing.



Credit card drawbacks

Beware of hidden costs when you use your credit card, such as being charged \'handling fees\' for certain transactions with some companies, or being subject to \'withdrawal fees\' (typically 2.5% of the amount) when drawing cash. Also, you won\'t get an interest-free period for cash transactions, so getting readies with your credit card is never a good move and to be avoided.

It\'s advisable not to take out too many credit card contracts as credit rating agencies monitor the amount of cards you own and they can request reports from credit card issuers on your payment history. This can have an adverse effect on your credit rating, if your prospective lender decides you have too many credit card debts. This all sounds like \'Big Brother\' is watching you, but it is a reality in the financial world!



Advantages

When purchasing goods or services costing between 100 and 30,000 on a credit card, Section 75 of the Consumer Credit Act brings you an important legal right. You can legally claim against your card provider if something goes wrong with your purchase. This connected lender liability makes it useful to use your credit card when making a large purchase for your legal protection, but remember you need to pay it off by the end of the month to be financially astute!

Before selecting a credit card ensure you get all the available advantages you can, as it is a very competitive market and there are lots of great offers around, such as cashback bonuses, air miles and free travel and purchase insurance.