Make the most of reward schemes over Christmas and New Year

Most of us tend to see a sharp rise in the amount that we spend over the Christmas and New Year period, with everything from the Christmas dinner and entertainment to Christmas presents and even the January sales to fund. Many of us decide to dip into our savings in order to fund the cost of Christmas and New Year, but for those that have the willpower and the financial capacity to could benefit greatly from an alternative solution to funding Christmas and New Year.

By using your savings in order to pay for Christmas purchases and to buy items in the January sales you will be losing out on interest that you could be earning if you keep your money safe and sound in a savings account that offers a decent interest rates. A far smarter alternative could be to ensure that you have a rewards credit card handy, as this will enable you to continue earning interest on your savings, and providing you pay off the balance within the specified interest free period, you can also earn rewards for using your credit card.

The cost of purchases over the Christmas and New Year period can really add up, and this means that you can earn some pretty impressive rewards in the form of points, air miles, or cash back depending on the type of rewards based credit card you opt for. However, it is important to remember that you do need to repay the balance in full, as otherwise the interest charges could far outweigh any rewards that you receive.

Even if you do intend to use your savings to pay for Christmas and New Year purchases, you could still benefit from using a rewards credit card and then repaying the balance in full from your savings within the interest free period. This will enable you to earn a little extra interest on your savings based on the type of savings account you have, and will also enable you to earn rewards on your credit card.

Alisdair Milton
18th December 2006

More Information:

• Cash Back or Rewards
  In the battle for new customers, credit card companies are offering to reward users for simply spending on their cards. The two most attractive systems seem to be cash back and rewards
• The Value Of Having Branded UK Credit Card Loyalty Programs
  Anyone who has taken even the briefest of looks at the UK credit card industry will immediately notice that there are well over a thousand credit card providers. However, even in this hugely competitive industry, there are still only two main types of card available – the Visa card and the MasterCard.
• How To Earn Nectar Points With Reward Credit Cards
  The Nectar point scheme is a scheme that allows credit card users and other shoppers to earn points through purchases. The Nectar scheme has been running since September 2002. As with other reward points schemes, the Nectar points scheme allows shoppers to earn at the rate of 2 points for every pound spent.
  

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