Balance transfers 'can help with festive debt'

Debt accrued on credit cards over the Christmas period can be eased by balance transfers, according to one expert.

James Falla, director of debt counselling service Thomas Charles, said that moving money from one credit card to another can make it easier to pay off outstanding balances.

However, he warned: "You must make sure that you cancel the previous card and cut it up so you don’t have the temptation to use it again."

Mr Falla said that making balance transfers and looking for low-rate credit cards should be the first step for those consumers struggling with debt in the new year.

Consolidation could be a step for those who have several credit cards with outstanding balances, he added.

"The second step is to think about whether you need to be consolidating those credit cards with a loan," the expert commented.

Mr Falla’s comments follow research from Lloyds TSB which revealed that Britons will overspend by £4.7 billion this Christmas.