“There are some very competitive deals around at the moment, which is putting a lot of pressure on providers and forcing them to claw back revenue in other ways.”But there are a few exceptions. Nationwide, HSBC and First Direct have all adopted the reverse policy, giving priority to clearing the balance with the highest rate of interest. “We believe it is only fair that our members enjoy the benefits and right of seeing the most expensive element of their credit card debt paid off first,” says Philip Williamson, chief executive of Nationwide, “[but] this is not the case with most credit card providers. Quite often the information relating to this issue is tucked away in the small print of the terms and conditions.”Mike Naylor at the consumer magazine Which? agrees: “It’s a widespread practice that’s often not made clear in the terms and conditions. We’d [also] like statements themselves made clearer so people can see how charges and interest are broken down and, if they’re on an introductory rate, when that will finish.”While competition in the credit card market gives customers access to better deals, the products themselves are getting increasingly complicated.

Some cards, such as Egg, Citibank, First Direct, Nationwide, Co-operative, Sainsbury’s Bank, Marbles, Tesco, RBS Advanta, Halifax, and Bank of Scotland have a 0 per cent introductory rate for transfers and new purchases. Others, such as Morgan Stanley and Capital One, are offering interest-free periods for new purchases and a separate special rate for transfers. The advantage of this type of deal is that the transfer rate runs for the lifetime of the balance and not just five or six months. And then there are the new breed of DIY cards, such as More Th>n and RBS Advanta U, which let you to choose the features that come with your card to suit your spending habits.”What this does stress is the importance of researching the market thoroughly before you buy and making sure you read the terms and conditions,” says Mr Glendinning at Moneysupermarket.If you understand the contract you are entering into, the rates of interest you are likely to be charged and how payments are deducted from your outstanding balance, you shouldn’t go far wrong. While the practice of clearing the lowest balance first is not the fairest, if you know it’s happening, you can use your card accordingly.If possible, avoid withdrawing cash with your credit card.

And if you’ve got an outstanding balance on an existing card, think about transferring that on to a card with a low lifetime transfer rate, such as Capital One or NatWest, both of which have APRs of 5.9 But don’t use this for any new purchases. And steer clear of Barclaycard, whose advertised transfer rate of 6.9 per cent for the lifetime of the balance applies only if you use your card for new purchases as well. If you don’t you’ll be charged the standard APR, which depends on your credit rating but could be anything from 11.9 to 24 per cent.If you’re choosing a card for new purchases, go for one with a loyalty scheme such as Air Miles or Nectar, or one that offers cashback. If you are likely to clear your balance each month, the APR is irrelevant, but if you’re going to repay only part of it, choose a card with a low rate of interest. You could opt for a 0 per cent deal but bear in mind that the interest rates on such cards soar when the introductory period comes to an end. So unless you want to switch cards again, you’d be better off with a low standard APR such as those from Cahoot or Intelligent Finance.But make sure you stick to one use per card. By having different cards for different purposes, you can minimise the overall amount of interest you pay..

Few of us are likely to stay in any job long enough to qualify for a carriage clock for years of valued service. And chances are our pension provision could well be in a bit of a mess by the time we are ready to give up work for good. To make matterseven more complicated, recent mergers and acquisitions in the financial services industry may leave pension holders uncertain about exactly who owns their original provider.But the real consideration is cost: are you receiving value for money and how much are you likely to retire on?”It makes sense to go through your pension arrangements to get a grip on what you have got,” says Tom McPhail at independent financial adviser (IFA) Hargreaves Lansdown. “But whether you then go ahead and consolidate depends on the companies involved.”Cost will largely dictate the decisions you make, although it shouldn’t be the overriding factor. “There are quite a lot of high-charging old-style pensions in the marketplace, so you might find that you benefit from switching to a stakeholder-style scheme,” he adds.IFA Chartwell Investment Management warns pension holders to be particularly wary of old-style contracts with high policy fees and fund charges. As a general rule, any pension scheme that carries charges of 2 per cent or more per annum is too expensive.The question of how we are going to pay for retirement is becoming increasingly pressing as employers move away from final salary schemes, placing the onus on individuals. Part of the problem is that many of us don’t know how much we need to save for the future.