Banking on the plastic
The British public's appetite for credit just gets bigger every year. We spent a staggering £92billion on credit and debit cards last year, £8.8billion in December alone, according to the Credit Card Research Group. That's an increase of £44billion in just five years.
It is easy to see why credit cards are so popular. They're hassle free and you don't have the worry of carrying wads of cash in your purse. You can also get up to 59 free days of credit, depending on which card you use.
As a result of our love of plastic, competition between providers is now fiercer than ever, leading to lower rates and better perks. There are currently more than 1,500 different credit cards on the market.
But how do you decide which card is best for you?
APRs explained
Credit cards have traditionally been judged by the annual percentage rate (APR) they charge for credit.
The APR is the total amount payable each year. It includes the interest rate and other charges, such as an annual fee. If you do not have to pay an annual fee, the APR is simply the monthly interest rate compounded over 12 months.
Interest rates vary greatly, but this does not mean you should simply opt for the card with the lowest rate.
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