The credit crunch is here in earnest and with UK consumer debt growing by £1 million every 8.5 minutes, and the average household debt increasing by over £9.35 a day, more and more people are looking for ways to save money. One way of saving money, that sounds counterintuitive, is to use reward credit cards wisely. The idea of applying for, and using, a new credit card may fill you with dread but with over 73 million charge and credit cards in circulation (more cards than there are people in fact) others clearly don?t have these fears. If you want to save money in this way then there are numerous cards to choose from, each designed for specific lifestyles ? here are just a couple of the types of reward scheme available.
One way to make savings with reward credit cards is to apply for those offered by the major supermarkets. These cards often have reward schemes attached that help reduce the cost of the weekly shop. At present families are spending 15 more on their weekly shop than they were at the same time last year, and this is directly a result of the current economic difficulties. With such a huge increase surely any way to reduce the cost is going to be helpful.
Supermarket reward credit cards work by offering discounts on goods and service, or by giving reward points. One card available, from one of the major supermarkets, offers 5 reward points for every 4 spent on the card. These points can then be redeemed for cash off your shopping bill. If you use the card on a weekly basis then the savings can add up and yearly are quite substantial. Other cards of this type give points that can be redeemed in a number of participating stores. The type of card that you choose ultimately depends on your lifestyle, where you shop and you spending habits.
Another area that is being hit by the crunch, and where credit cards can help, is family holidays. It has been said that 24% of Brits cancelled their summer vacation because of financial insecurities. If you are the type of person that simply cannot live without your two weeks in the sun then you may want to consider applying for a card with holiday perks. One of the most common reward schemes is free Airmiles, although other offers include: free travel insurance; discounted car rental; and even free flights.
These are only a couple of ways that money can be saved by clever credit card users. There are many other offers available offering similar savings in other areas of everyday life. If you want to know more about the types of cards available then simply look online for details. Whereas many people are hastily trying to pay their cards off and shutting down their accounts, this may not always be such a great idea. Reward credit cards can actually help in this time of turmoil and make things a little easier on the wallet.
Although these are only two of the types of reward cards available the benefits are clear. If you look online you will find many more offers that can help make savings in nearly every aspect of life. Although at first applying for a new card in the current economic climate may seem like sheer craziness, this may not be the case. In order to be accepted for a new card you will have to have a reasonable good credit rating and this implies that you have handled your money well in the past, that a new card may not be such a risk, and may actually help reduce your outgoings.
One way to make savings with reward credit cards is to apply for those offered by the major supermarkets. These cards often have reward schemes attached that help reduce the cost of the weekly shop. At present families are spending 15 more on their weekly shop than they were at the same time last year, and this is directly a result of the current economic difficulties. With such a huge increase surely any way to reduce the cost is going to be helpful.
Supermarket reward credit cards work by offering discounts on goods and service, or by giving reward points. One card available, from one of the major supermarkets, offers 5 reward points for every 4 spent on the card. These points can then be redeemed for cash off your shopping bill. If you use the card on a weekly basis then the savings can add up and yearly are quite substantial. Other cards of this type give points that can be redeemed in a number of participating stores. The type of card that you choose ultimately depends on your lifestyle, where you shop and you spending habits.
Another area that is being hit by the crunch, and where credit cards can help, is family holidays. It has been said that 24% of Brits cancelled their summer vacation because of financial insecurities. If you are the type of person that simply cannot live without your two weeks in the sun then you may want to consider applying for a card with holiday perks. One of the most common reward schemes is free Airmiles, although other offers include: free travel insurance; discounted car rental; and even free flights.
These are only a couple of ways that money can be saved by clever credit card users. There are many other offers available offering similar savings in other areas of everyday life. If you want to know more about the types of cards available then simply look online for details. Whereas many people are hastily trying to pay their cards off and shutting down their accounts, this may not always be such a great idea. Reward credit cards can actually help in this time of turmoil and make things a little easier on the wallet.
Although these are only two of the types of reward cards available the benefits are clear. If you look online you will find many more offers that can help make savings in nearly every aspect of life. Although at first applying for a new card in the current economic climate may seem like sheer craziness, this may not be the case. In order to be accepted for a new card you will have to have a reasonable good credit rating and this implies that you have handled your money well in the past, that a new card may not be such a risk, and may actually help reduce your outgoings.
About the Author:
Frank Armstrong is a finance writer and has written financial based articles for a variety of websites. Read about rewards credit cards and credit cards online here.
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