The Rate Tart

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0% credit cards can be a cheap way to borrow money. But they can quickly become very expensive if you don't understand the small print the credit card providers use to make money.

One of the nastiest wheezes is called the 'payment hierarchy'. This is the order in which your debt is paid off, and is nearly always tilted in the card providers' favour. Pay off part of what you owe, and it will go against the least expensive part of the debt first, and the most expensive part last.

So how can you avoid getting stung on your 0% card? Three top tips will help:

1) Use different types of credit cards for different types of debt, Over the last couple of years, cards that offer both 0% on balance transfers and 0% on purchases have been introduced. These almost uniformly have a payment hierarchy tilted in the providers' favour. You may be better off having one card for balance transfers and a separate card for purchases so that you can make the call about which part of the debt you choose to pay off when.

2) Use 0% cards that offer both balance transfers and 0% on payments over the same period This makes it slightly simpler to understand what you'll be paying off, and when. But read the small print very carefully.

3) Opt for a credit card with flat rates of interest Being a Rate Tart and switching between 0% credit card deals can save you a fortune in interest. But get the timing wrong and you could pay dearly. If you find it hard to remember, you might want to choose a credit card with a low rate of interest on both purchases and balance transfers. If you do, make sure that the interest rates are the same on both.