Many of us begin to look at our Christmas spending now that the new year has begun and a 0% balance transfer card can give you some breathing space to pay down your debt gradually without incurring interest.

The Virgin Credit Card is not new and in fact, it has been top of the balance transfer card best buy tables for some time.

At 16 months, it offers the longest 0% period on balance transfers and this will certainly help ease the pain. Once the interest-free period ends, you are charged the typical standard annual percentage rate, which is 16.6%.

You can also benefit from a 0% purchase period of three months, but it is not advisable to spend on this card if the reason you took it out is to transfer a balance.

For any balances transferred to the card, you are charged a fee of 2.98%, meaning if you have a debt outstanding of £2,500, you will be adding an extra £74.50 to your debt for transferring your balance. This is standard in the industry, though, as all balance transfers include a fee of some sort.

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Credit card customers may be failing to read the small print on their contracts, according to a new study conducted by Nationwide. They found that 63 percent of credit card users do not understand the order in which their payments are allocated.

Although this figure is down 6 percent from the 69 percent lacking knowledge of the small print in 2007, it still indicates some consumers may be putting themselves at risk.

According to Nationwide, some credit card companies prioritize the repayment of debts with the lowest rate of interest attached, meaning customers may be racking up greater liabilities than they realize.

Product and marketing director at Nationwide, Chris Rhodes, stated: “Our research results are unequivocal: consumers still don’t understand this issue and continue to be penalized. Further transparency will simply not work. This is a fairness issue and a positive order of payments is now the fairest way forward for consumers.”

Experian urges consumers to only make credit applications which are likely to be successful, as any failed attempts to access the best credit card offers will be stored on their record.

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You should act quickly if applying for a 0% credit card. Making a late application for a good credit card deal in the month of December will not work.

With Christmas cards and items purchased online clogging up the mail, it will take longer than normal to receive credit cards.

Subprime Blogger stated, “Even if you apply and were instantly approved today, you would probably not get your credit card for at least a week. This means you would only have a few days to buy your Christmas gifts with your credit card.”

More than three-quarters of all parents will spend more than they can afford on their children this year, according to research conducted by Egg.

Spokesperson for the firm, Vanessa Wood, described the holidays as “the most expensive time of year” for many families.

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The Know Your Consumer Rights campaign, begun by the Department for Business, Innovation and Skills, is seeking to ensure customers who deserve refunds for unsatisfactory goods get them.

Shoppers need to be aware of their rights this Christmas when using their credit cards.

Establishing consumer rights is “the first step” toward getting a refund, repair or replacement a consumer might be entitled to.

When making purchases, consumers should be sure goods fit the description given and are of good quality. They should also make sure it is the proper item to fit the purpose.

Kevin Brennan, consumer minister, Kevin Brennan, who is behind the campaign, said there is, “a lot of protection in place to support consumers,” but the government wants to significantly raise awareness of consumer rights in general.

He added, “You are much more likely to get a fair deal, save money and get the right result if you are aware of your rights. This is especially important at Christmas when most people are spending money both on gifts and in the sales.”

Vanessa Wood, a spokesperson for Egg, recently described Christmas as “the most expensive time of the year” for a lot of families.

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MSN reports that according to Experian, there are still plenty of choices for credit cards, despite the recession. Consumers looking for a new credit card should prepare properly before applying.

Users should decide if they are looking for reward points, a zero per cent balance transfer or perhaps no interest on spending, Experian stated. They also said this is important because those who apply for a card that does not fit their profile are likely to be rejected.

Experian also said:

“There’s no point applying for a platinum high-earners card if you’re an impoverished student.”

They also warned customers not to make multiple card applications, as every time a lender checks a credit report it leaves a footprint. “If they see a lot of these, they may think you’re desperate or even planning a fraud, so ask for a quote if you want to know what interest you’ll pay or what your spending limit might be.”

The Finance & Lending Association earlier this week warned consumers to keep on top of their credit card spending over Christmas.

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According to new figures almost one-third of consumers have been a victim of fraud after losing or having their credit card stolen. The average amount fraudulently take is £623, according to card protection service CPP, which emphasizes the importance of credit card security.

According to the report, credit card fraud tends to peak around the Christmas holiday period, meaning consumers should specifically be on their guard during the month of December.

Card fraud expert at CPP, Sarah Blaney warned consumers to be vigilant. “If you are only going to use maybe one or two cards to buy your presents with then that’s all you need to take with you. Don’t carry your card in your pocket. Make sure it is safely tucked away in your purse or wallet.” Ms. Blaney also advised shoppers to check all of their receipts against bank statements to make sure that no money has been stolen.

The UK’s Fraud Prevention Service, CIFAS, recently reported that 68,000 people had become victims of credit card impersonation during the first ten months of 2009.

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If you are traveling abroad during the winter break, consider which credit cards are cheapest to use overseas.

With the pound faring poorly in relation to the euro, Emma Roberts, director at Santander Cards, noted that winter sports enthusiasts and other travelers face racking up significant bills during their trip.

Some of the best credit card deals available in the UK may not be a good deal on foreign soil, with some cards charging high fees for transactions made in other currencies.

“The average cost of a winter sports holiday may now be higher than at any time since the turn of the millennium, but one way that winter holiday makers can avoid unnecessary additional costs is to use a credit card that doesn’t charge them,” Ms. Roberts stated.

She then noted that the Santander Zero card has no foreign exchange fees on spending anywhere in the world, which makes it perfect for holiday makers looking for the very best deal on their spending this winter.

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Consumers should make a point of keeping records of all communication made with credit card companies.

Industry commentator Daniel Indiviglio states individuals should take precautions when speaking to customer service staff, particularly when they are discussing bill settlements.

Mr. Indiviglio, writing for the Atlantic, urged consumers to be sure to write down the reason for all conversations they might have with credit firms and to also take down the name of the employee they have spoken with. He said it is possible for important information regarding your account to be lost by customer service departments, which is a situation that can lead to debts being called in, despite being canceled.

He urges, “Get a letter declaring your zero balance after settling. Even if you’ve settled, you can still expect calls from third-party collection agencies.”

UK’s Fraud Prevention Service warned credit card users last week to keep their banking details safe at all times.

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Last year, consumers spent 11% more on their credit cards during December than all of the other 11 months of the year and a 25% increase in the use of store credit cards was also noticed, according to the Finance % Leasing Association (FLA). They are now warning people to keep on top of their spending during this busy holiday season.

“Christmas can be a tough time,” stated Fiona Hoyle of the FLA, “so make sure money isn’t one of your worries. Take stock after Christmas – if you’re not going to be able to repay your debts, talk to your lender as soon as possible. They can’t help if they don’t know there’s a problem.”

The Bank of England reported last week that consumers were making efforts to reduce their debts in the time before Christmas. They also announced that credit card, loan and overdraft debt fell by 579 million during October 2009.

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CreditExpert warns that there has been a significant rise in the number of people making fraudulent applications for credit cards, loans, automotive finance and mortgages using other people’s identities since the beginning of 2009. Credit card users have been warned that incidences of identity fraud increased by 12% this past year.

During the first three months of the year there were 11.91 cases of fraud per 10,000 applications, but this has risen to 13.37 cases by Q3.

Darryl Bowman from CreditExpert stated, “As we get wiser to protecting ourselves from fraud, it’s clear that criminals are working even harder to steal our personal details so they can apply for credit.” He described the rise in cases of identity fraud as “very worrying.” He added, “Missing post, unexpected phone calls and strange emails are signs we look out for and know suggest potentially fraudulent activity.”

Richard Hurley, CIFAS communications manager, suggested recently that there is not much point in obtaining the best credit card deals unless consumers are able to keep their banking information secure.

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