Credit cards are a convenient method of obtaining credit and, if used sensibly, provide flexibility and a range of useful benefits for the cardholder.

Over £1 trillion of credit card transactions are processed through over 20 million outlets worldwide each year.

Whether it's to spread the cost of an expensive purchase over several months, or to gain points towards a reward item, UK consumers are using credit cards more than ever - and owing over £180 billion as a result.

With the relatively easy availability of credit today, more can get in on the act - from greater numbers of companies offering Visa, MasterCard or store cards, to more people being approved for cards, including students and even those with poor credit ratings.

Many people are lured into applying for certain credit cards with the promise of low interest rates, but depending on your personal circumstances and financial situation, there may be more important factors to consider.

It's also crucial to check the fine print, as a 0% interest rate may only last for the first six months, and then jump to 19% afterwards.

For example a store card offering 15% off with the first purchase may be carrying a prohibitive 29% plus interest rate.