With Christmas coming up we are all tempted to overspend to indulge our nearest and dearest. But as the boss of Barclaycard recently pointed out, credit cards are not necessarily the best way to borrow money. Here Highland Trading Standards advises us to get familiar with the best way to use our plastic...

THERE are hundreds of cards available but knowing what card to use can be confusing. To add to further confusion consumers find that card issuers offer ‘gold’, ‘platinum’ and ‘ordinary’ cards as well as 0% introductory offers. So you do you ‘Know your Plastic’? If not these simple guidelines may help you wade through all the hype and jargon ...

Debit cards - These cards take money directly from your bank account. They are not credit cards but an alternative to cash or writing a cheque. Linked to your bank account, debit cards often also work in cash machines as well as a cheque guarantee card. Switch and Visa operate schemes for banks.

Charge cards - if you use a charge card you will be sent a bill which you usually have to pay in full so again this is not a credit card. You will generally be charged an annual fee.

Budget, Option or Store Cards issued by stores or retail groups, these offer a form of credit. You can use the card to buy goods at the store and will be sent a monthly bill. Some cards will demand a minimum monthly payment others a fixed payment by standing order or direct debit. Paying back the money you’ve borrowed varies. You will normally have to pay interest if you do not pay back all you owe each month.
Remember to compare APRs. Usually the lower the APR the less you pay in interest. Check out 0% transfer balance offers as this may tie you into a minimum monthly spend which may attract a higher rate of interest whilst as well as clearing your balance transfer.

Electronic purse cards - A relatively new scheme where you load a card with cash and then use it as an alternative to cash. Generally these cards are used for small purchases or to buy on the internet.
Points to remember:

• Using cards to borrow money can be expensive. Think carefully before you borrow.
• Compare APRs. The figure does vary enormously.
• Stay within the credit limit.
• Compare 0% introductory offers - beware of being ‘tied into’ long term credit commitments. Check the small print before you sign.
• If you feel you need further advice on credit cards or debit cards please contact your local Trading Standards at:

Highland Trading Standards Unit , 38 Harbour Road, Inverness
Consumer Advice Line: 0845/600/4222
Email: consumer.advice@highland.gov.uk or visit web site on www.tradingstandards.gov.uk/highland