subject: Earn money off the cost of Christmas with cash back credit cards [print this page] Earn money off the cost of Christmas with cash back credit cards
According to Family Action, a family of average income in the UK spends 564 on Christmas, and that is not even counting gifts. For individuals, the figure is even more staggering with the average being around 710 six years ago, 862 now - an increase of almost 20%.
With our Christmas spending seemingly spiralling out of control, one would have to ask themselves if there is anything that can be done to lessen the burden and, ironically enough, relief can be found in the most unlikely of sources: credit cards.
If used properly, cash back credit cards can be used to get the equivalent of up to a 5% discount on all of your purchases, which at current rates is a savings of about 43. Unfortunately however, as one could expect from credit cards, these savings do not come without fine print.
Although many cash back credit cards come with a 0% purchase offer APR, this typically only lasts for the first 612 months of the card's activation. After the introductory purchase offer expires, an APR (Annual Percentage Rate) of 12.99%21.24% can kick in so, if you do not pay off the balance immediately (before the introductory period ends) then that 43 saved can be lost in the 111183 in interest charges that one may incur.
Overall, cash back credit cards or credit card rewards can be a great way to save some cash this upcoming holiday season. However, you must be careful to make sure that the credit card you intend to use has an introductory 0% purchase offer, AND that it has not expired yet. If it has, (or if your cash back credit card of choice does not have one) you can still make and keep savings, but ONLY if the purchases are paid off at the end of the month before any interest charges kick in.
