Top 6 credit cards to spread the cost of Christmas with 0% interest | Personal Finance | Finance

For many households, the festive season can come with a hefty financial hangover. With presents, food, and drinks piling up, it’s easy for budgets to spiral out of control. However, shoppers looking to manage the cost of Christmas without paying eye-watering interest have an option: 0% balance transfer credit cards. These cards allow consumers to move existing debt or new spending onto an interest-free deal for a set period, giving some breathing space to repay.

Research by Moneyfactscompare.co.uk shows that leading the market this Christmas are six cards offering some of the longest 0% balance transfer terms. HSBC, Barclaycard, and TSB all top the table with 35-month offers. These deals give cardholders nearly three years to pay off transferred balances without interest, though a small balance transfer fee applies.

A typical credit card charging a 24.9% annual percentage rate (APR) can see debts mount quickly. For example, a £300 debt repaid at £20 a month would take more than a year to clear and accrue £55 in interest.

Increasing monthly repayments to £50 reduces the repayment period to just seven months and more than halves the interest to £21. For those struggling to cover festive expenses, moving debt to a 0% balance transfer card can be far cheaper than using an overdraft, which can carry rates of almost 40% effective annual rate (EAR).

According to a YouGov study, one in three consumers (33%) is concerned about the financial impact of Christmas, rising to 42% for households earning under £30,000. Average festive spending is expected to reach £300 on presents and £150 on food and drink.

Meanwhile, research from Tesco Bank suggests that nearly 29% of people believe they will end 2025 in debt, with credit cards being the most common form of unsecured borrowing.

Here are six of the top 0% introductory balance transfer (BT) cards for the longest terms at the time of writing, according to Moneyfactscompare.co.uk:

• HSBC Balance Transfer Credit Card Visa – 35 months, 3.19% BT fee, min £5

• Barclaycard Platinum 35 Month Balance Transfer Visa – 35 months, 3.45% BT fee

• TSB Platinum Balance Transfer Card Mastercard – 35 months, 3.49% BT fee

• Virgin Money 34 Month Balance Transfer Credit Card Mastercard – 34 months, 2.95% BT fee

• MBNA Limited Long 0% Balance Transfer Credit Card Visa – 34 months, 2.99% BT fee

• NatWest Longer Balance Transfer Credit Card Mastercard – 34 months, 3.15% BT fee

Shoppers should remember that while these cards offer interest-free periods, missing payments or carrying balances beyond the promotional term can incur high charges.

For those looking to spread the cost of Christmas safely, these 0% balance transfer deals offer a practical way to manage festive spending without getting caught in a debt spiral.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Credit cards can be the ideal way to cover costs, and they protect consumers from being ripped off, as any goods or services not received which are valued over £100 up to £30,000 are covered under section 75 of the Consumer Credit Act.

“Those spenders who don’t have an existing credit card or a savings pot in place to cover Christmas could dip into their overdraft, but this is costly as the biggest brands charge almost 40% EAR. If this is unavoidable, applying for a credit card to make a money transfer could be a sensible option. There are a handful of providers that have interest-free money transfer deals, ideal to clear overdraft debt and spread the cost for a few months, subject to paying an upfront fee.”