Read the small print when it comes to interest-free finance, consumer group Which? argue. According to the magazine, those customers who are looking to buy expensive products using finance packages with an interest-free basis should watch out.

As long as consumers could afford repayments, Which? cautioned, in principle the idea is not a bad one. However, when the interest free period on the loan ends, be aware of how this affects you. A spokeswoman for the company, Helen Ainsworth, said that lenders are not always 100 per cent clear on exactly when the interest-free period expires.

She continued: You have to be careful - you have signed up to it and if you can't repay it then you are in a lot of trouble. You will find yourself facing CCJs and might find the bailiffs coming round.

Personal loans have been found to be the number one method of getting car finance following several surveys by price comparison websites. Finance packages offered at point of sale, whether interest-free initially or not, often have higher rates.