The festive period is a time when many households spend more than usual. If credit card balances were used to cover some of that cost, the January statement can come as a sharp reminder.

ClearScore is a credit broker, not a lender.

How much did households typically spend over Christmas?

According to NimbleFins analysis, the average UK household spent an estimated £780 on Christmas in 2025. This seasonal spending adds to existing debt pressures: NimbleFins analysis of Bank of England and ONS data shows the average household carries over £8,300 in combined loans and credit card balances.

What is the typical interest rate on credit card debt?

The interest charged on credit card balances is expressed as an Annual Percentage Rate (APR). This applies to any balance not fully repaid by the end of the month, unless the card has a 0% promotional rate in place.

Standard credit card APRs in the UK are currently high by historical standards, typically ranging from 24.9% to 29.9% for mainstream cards, and above 40% for some rewards and credit-builder products. To illustrate the cost: a £1,000 balance left unpaid for a year on a card charging 29.9% APR would grow to approximately £1,299, before any additional spending is added.

Rates correct as of July 2026. Source: NimbleFins analysis of published card rates.

What is a balance transfer credit card?

A balance transfer credit card allows existing credit card debt to be moved to a new card that charges 0% interest for a set period. During that period, repayments go entirely toward reducing the outstanding balance rather than servicing interest, which can make it easier to pay down debt more quickly.

To retain the 0% rate, a minimum payment must typically be made each month and payment deadlines must not be missed. If a balance remains when the 0% period ends, interest reverts to the card's standard APR, which may be significantly higher. A one-off balance transfer fee (typically between 3% and 3.5% of the amount transferred) usually applies to longer 0% deals, though some shorter-term cards charge no fee.

An illustrative example

Consider a £5,000 balance on a card charging 29.9% APR, with £200 repaid each month. At that rate, it would take just over three years to clear the debt, with approximately £2,350 paid in interest on top of the original £5,000.

If that same balance were moved to a 0% balance transfer card with a 25-month interest-free period, and the same £200 monthly repayment maintained, the balance could be cleared within the 0% window, with no interest paid, aside from any balance transfer fee.

This is an illustrative example only. Actual outcomes will depend on the terms of the card, the balance transfer fee, the credit limit offered, and individual repayment behaviour.

What balance transfer cards are currently available?

The longest 0% balance transfer period currently available in the UK market are in the 36 - 38 month range, with transfer fees in the 3.1% to 3.4% range.

For those who prefer to avoid a transfer fee, shorter 0% deals without fees are available, with the longest terms for July 2026 in the 11 to 13 month range.

The "best" deals change frequently, but large like TSB, HSBC, Virgin Money, Barclaycard, Santander, Royal Bank of Scotland and NatWest, among others, are active in the balance transfer card market.

For more information, take a look at our best balance transfer credit cards guide.

Rates and terms correct as of 2 July 2026, based on publicly available information. The representative APR on most of the cards above is 24.9% (variable). This is the rate that applies once the 0% period ends. Eligibility and the actual 0% period offered will depend on individual credit profile. Always check current terms directly with the provider before applying. ClearScore is a credit broker, not a lender.

If you are struggling with debt

If credit card debt is becoming difficult to manage, speaking with your lender early is generally advisable. Many lenders have hardship teams and may be able to agree a repayment plan or temporary arrangement. Free, impartial debt advice is also available from organisations including StepChange, National Debtline, and Citizens Advice.