Avoid piling on the pounds this Christmas

Keep within budget

Take cash rather than a purse full of cards and your list of presents when you head out to the shops. That way, you can keep a full check on exactly how much you are spending.

Beware of new credit agreements

Promotional promises like: 'buy now', 'pay later' or '£20 off your first purchase' if you sign up to a new store card sound great, but they could lead to more debt.

Stop and think carefully before you sign up to the store card. Check what level of interest you will incur with a new card and plan your budget over the forthcoming months to ensure you can pay back the borrowing.

If you're unsure about a promotion, check out the Finance and Leasing Association's code of practice, which many store card providers have registered with and should adhere to.

Interest-free credit cards

If you do need to buy on credit, consider the interest-free credit cards. Many of these will allow you to pay off a debt or balance transfer at no interest over six months. This will make significant cost savings, compared to APRs of 15 or 20 per cent.

One tip, if you do sign up, is to make a note of the day the interest-free period expires, and keep sight of it - it is all too easy to slip into paying interest without realising it.

Too good to be true

If an offer seems too good to be true, then it probably is. Check the small print and ensure you understand all the details.