More than 7% of UK consumers and 13% of Londoners predict that they will be in financial trouble when their existing low or 0% credit card balance transfer deal comes to an end. That’s the worrying finding of new research carried out by CashQuestions.com.

One in five (20%) of UK consumers have taken out a 0% or low-rate balance transfer deal in the past 18 months, with many taking advantage of balance transfer deals offering 0% interest for up to 16 months. However, 8% of consumers looking to switch their balance to another credit card have been turned down for a low-rate balance transfer deal in the last six months, leaving many with little option but to repay their credit card debt at the provider’s standard rates of interest.

Despite credit becoming tighter, it makes sense to ensure that you’re still getting the best deal you can on your credit card. Defaqto have compiled ten tips to help consumers to find the best deal and to avoid the pitfalls.

1. How to choose

If you’re not going to repay the entire balance every month, concentrate on the interest rates charged, a 0% deal or a low standard rate, rather than any rewards. Interest payments will almost always outweigh any potential rewards.

If you are sure that you can repay the entire balance every month, focus on rewards that are offered, such as cash-backs or Air Miles.

Consumer groups have battled for years to achieve today’s wide variety and choice in the different types of finances available to us. But now we have them, it can all get a little confusing. Take credit cards for example. There are a plethora of alternatives with different deals, rates and incentives that apply at different times during the agreement. But to sift out the best one for you and your circumstances, you will first need to know which category of cards to start searching – and that will depend on you personal circumstances. Take the following:

This year has signalled a clear desire to return to solvency that some say will last for many years to come. Whether or not you will arrive at solvency in this timeframe is another matter but people are certainly trying. In addition to downgrading supermarkets and opting for ‘staycations’ – basically a holiday at home – over expensive trips abroad, people are squirrelling more money away, too. After last Christmas, for example, £719 million was deposited into cash ISAs, according the Building Societies Association – more than double the £302 million deposited in the previous year.

Credit cards are becoming a mainstay of household finance as domestic bills increase and families rely on cards to  get by each month.

But this method of budgeting is fraught with danger as cards are getting more expensive to use, too: purchase and cash rates and charges are going up all the time.

"Since the beginning of the year there have been numerous increases to rates and charges, with some cash rates being increased by over 7% and purchase rates by as much as 3%,” according to Michelle Slade of Moneyfacts.

Credit cards have encountered considerable negative publicity recently with reports of accounts being closed and credit limits be reduced, however there are still some worthwhile incentives being offered, and for those with good credit ratings who repay their entire balances each month, they are worth considering.

David Black, principal consultant – banking at researcher Defaqto said: “There are a variety of reward based credit card schemes and these include points schemes, air miles and cashbacks. Some of them can be very difficult to compare and, certainly in the case of cashbacks, it’s worth reviewing what’s available on a regular basis, as the best offers often gain that position by virtue of a short-term introductory enhanced rate.

Although you should not give to receive, this Christmas, there is nothing to stop you doing both. Currently there are more than 80 incentive-based credit cards on the market, many of which offer cash back on all purchases.