"This is because, unlike initial charges, TERs eat into returns every year throughout the whole life of the investment."But how much should we worry about TERs, particularly as most fund managers don't publish these charges? "The only time charges are important is with tracker funds, because it is passive management so they should all be doing the same thing," says Hargreaves Lansdown's Mr Yearsley. "However, when choosing an [actively managed] fund, it is useful knowing what the TER is.". Spending on plastic is becoming more and more popular. Morgan Stanley's latest quarterly Card Index reveals that we expect to spend an average of £846.31 per person on our credit cards over the next three months – an increase of 19 per cent on the previous quarter, which took in Christmas. Moneynetcredit cardssearch Spending on plastic is becoming more and more popular. Over 70 per cent of UK cardholders still have a credit card with one of the "big four" banks – Barclays, HSBC, Lloyds TSB and NatWest/Royal Bank of Scotland (RBS) – despite the high rates of interest charged.

NatWest customers pay an annual percentage rate (APR) of 17.4, Lloyds TSB and Barclaycard charge 17.9 and HSBC levies a whopping 18.9. If you clear your balance every month the APR doesn't matter, as you won't pay interest anyway, but if you have an outstanding balance hanging over from Christmas, you'd be better off moving it to a new card."The influx of new entrants into the market really has changed things," says John Greaves at independent credit card company MBNA. "More and more customers are waking up to the fact that they are not beholden to one organisation. It really is a buyer's market."Egg is offering a six-month interest-free period on both balance transfers and new purchases, while Halifax is offering a five-month interest-free period. MBNA has a six-month introductory offer, charging only 0.9 per cent on balance transfers. And RBS Advanta's introductory rate of 1.0 per cent on both transfers and purchases runs until January next year.If you can clear your balance within the introductory period, it is worth opting for one of these deals. If it will take you longer, be aware that the rate will jump to the standard APR once the offer has come to an end (Halifax's APR, for example, is 17.9) In such a case, NatWest's card could be the best option.

It charges only 5.9 per cent interest on balance transfers until these have been cleared. That means you could use the card to clear your debts while using another card with a lower standard rate for new purchases. The most competitive standard APRs are from Cahoot, which charges 8, and Intelligent Finance, with 8.9.If you prefer to clear your balance every month, you'd be better off opting for a card that rewards you for spending on it. Some cards offer cashback (typically 0.5 to 1 per cent in the form of an annual cheque) on everything customers spend on them. Morgan Stanley, Egg, Alliance & Leicester, American Express (Amex), Halifax and Abbey National all offer this type of deal.Halifax has recently introduced an annual fee in certain cases for the use of its cashback facility by customers who spend large amounts on their card and clear their balance every month. If you have received a letter from Halifax to this effect, you would be better off switching to another provider.NatWest rewards customers with air miles; a British Airways card, pro- vided by Amex, works in a similar way.