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Christmas credit Updated: 06 Nov 2008

Cash, Eftpos or debit cards

These are the best option for carefree spenders as they don't accrue interest. Try leaving your credit card at home and paying with cash instead - it's easy to hand over a card when you buy something, but you may think twice before handing over cash.

If you need to purchase something online or over the phone, limit your withdrawals to the amount you have in your bank by using a debit card instead of a credit card.

What's a debit card?

Visa and MasterCard debit cards are a lot like credit cards and are accepted in the same places. You can also use them to make internet and telephone payments, and account and service fees often apply. The big difference is that there's no credit attached to them - debit cards take money straight from your bank account, just like an Eftpos card does.

Currently only Westpac offers a debit card, although Kiwibank, BNZ and The National Bank say they have debit cards in the pipeline. Debit-card use has soared globally: in 2006 it accounted for more than half of Visa's total transactions.

Prepaid debit cards

These operate like standard debit cards, but instead of having them linked to your bank account you pre-load them with cash. They're easy to get - you often don't need any ID and there's no credit check. But make sure you find out about any fees you may be stung with. NZ Post's Loaded card has a long list of fees including a $25 "per occasion fee" for a negative balance.