Despite numerous interest rate falls, the cost of borrowing on credit cards is still very high. Store cards tend to be particularly expensive with APRs of 31%, and some well known banks are charging over 23%.

Transfer your balance to a new card company and you may be able to reduce this rate to an APR of 9.6%. But do check the small print, as some offers only apply to balance transfers, with a higher rate being charged on purchases. Check the timescale, too: low rate offers may be limited to six or nine months, after this the rate may shoot up.

If you are switching your mortgage and have equity in your house, you may be able to clear your credit cards by borrowing more on your new mortgage. But remember, while you may reduce your monthly payments, the loan will be spread over a much longer period.