Ten ways to keep credit card debt under control

Competition in the credit card market is at a high, but providers are increasingly fussy about who qualifies for their best deals. Gavin Littlejohn, chief executive of Money Dashboard, offers his tips on securing the best and most suitable credit card for your needs.

1 Wipe the slate clean

Before you start, make sure your credit rating is good - you can order an online report from Experian, Equifax or CallCredit for just 2 if you're in any doubt.

2 When cheapest is best

If you tend to pay off your credit card balance in full in some months but not others your focus should be on the lowest interest rate. The best way to compare interest rates is to look at the APR (annual percentage rate) charged on purchases. But also check out the amount of time the credit card allows between making your purchase and starting to charge interest - most tend to allow 59 days, but some start charging right away. Once you have your card the rate can change, so regularly review the rate to ensure it's still competitive.

3 Balance transfers

If you've built up a credit card debt then transferring the debt to a new card that offers 0 per cent interest for a set period on balance transfers can help you get back in control. If current deals continue, you could avoid paying interest on your credit card debt for anything up to 16 months, giving you plenty of time to try to clear it.

4 Breathing space

If you know you're going to have to hit the plastic in the near term and won't be able to pay off your bill in full each month, a card offering 0 per cent interest on purchases for a given period of up to 13 months could be the solution. These cards can also be useful if you know you are going to have a short-term fall in income or only work seasonally.

5 Bonus features

If you pay off your credit card every month without fail you can afford to focus less on finding the lowest interest rate and more on being rewarded for being such a good customer. These days you can accumulate airmiles and loyalty points, claim cashback or make charitable donations, so you really can get something for nothing. With cashback cards, bear in mind that some offers are only temporary and may only run for the first six months and some only apply when you spend on specific items.

6 Watch the rate

A growing number of cards now offer 0 per cent interest on both balance transfers and new purchases, including those from Sainsbury's and Virgin Money. This gives anyone struggling to get on top of their finances a real opportunity to get everything under control. But bear in mind that these kinds of cards often charge higher interest once the special offer period comes to an end, so the aim is to have cleared all balances by that time.

7 Watch the charges

Always remember to check for an annual credit card fee and if you are considering a packaged credit card that includes a range of benefits such as discounts and annual travel insurance, then you will probably have to pay a membership fee. Make sure you really will use the benefits before committing to the fee.

8 Foreign spending

If you travel overseas, make sure your credit card can be used abroad and if so, make sure it doesn't charge a fee as well as the cost of currency exchange if you make a purchase abroad. The Post Office, Santander and Bank of Scotland all offer cards that don't have an additional loading for overseas usage.

9 Avoid the cashpoint

Withdrawing cash on your credit card is an expensive way to borrow. Interest is charged from the moment you take the cash and rates are very high. But if this is a facility you like to use occasionally, then it is another feature to check out when choosing your card. Interest is generally in the range of 20 to 30 per cent.

10 Prepaid cards

These are convenient to use like a credit card but only allow you to spend what you have. They work with a pin system and allow you to pre-load money onto your card at the Post Office, Payzone, or PayPoint terminals, or via a bank transfer or even text. Once you've loaded up your card you can only spend the balance, so you can't get carried away. Prepaid cards also help you avoid the hassle of a credit check. But many charge fees. So see if there is a monthly service fee and find out what it costs to buy the card, top it up, make a purchase and withdraw cash.