Banking on the plastic

But 90 per cent of cardholders have no intention of changing their credit card, despite the potential savings, according to Morgan Stanley.

Changing cards should not be a problem and it doesn't matter how many times you do it, because card issuers can't tell how many cards you have had in the past couple of years.

Read the small print
There is a word of warning - check the small print. The low rates offered to people transferring existing credit card balances to new providers are often only for transferred balances, not for new purchases. If you make purchases with the new card, you will be charged the higher rate. Any repayments you make will then go towards paying off the new rate first.

Interest rates and benefits are used to lure people, but check to see if there are any other charges hiding around the corner. Most cards have now ditched their annual fee - which can be as much as £12 - but some, such as American Express with its Blue card, haven't.

There are also some cards that charge you for a late or missed payment. First Direct hits you with a whopping £25 fee for each late payment, while Cahoot, Egg and Halifax levy an automatic fine of £20 each time you exceed your credit limit.

If you feel pangs of guilt when you go on a shopping spree you might want to consider an affinity card. These cards make a small donation to named charities when you spend above a certain amount. But again be careful - most affinity cards charge high rates of interest. You may be better off going with a low interest rate card and donate the interest you save.