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Newsletter

Spending at Christmas can reap rewards

By Sarah Engle, Wed 2 Nov 2011 - Published in Credit Cards

People who are disciplined with their finances can reap the rewards of Christmas spending by choosing to use the right credit cards.

According to research by financial researcher Defaqto, people who can afford to make the repayments regularly can not only spread the cost of Christmas, but can also earn cash back as they spend.

The study found that 13 credit cards in the UK offer cash back rewards to consumers on varying levels, depending on how much they spend and how frequently they use the card.

David Black, Defaqto's insight analyst for banking, said: "If you are confident that you can always repay the entire outstanding balance on your credit card every month then it makes sense to choose a card that offers rewards."

He went on to say that although Christmas was expensive for many, it was promising that people can earn as they spend.

It is important, however, to make sure that repayments can be met, as MoneySupermarket.com recently found that making minimum payments on £500 of spending can take 11 years to settle a balance.