Brits turn to credit cards for Christmas spending
Four out of ten people will be spending less this Christmas, as they try to save money over the festive period. And half of us are concerned about how much Christmas presents will set us back this year, research has found.
A survey carried out by consumer watchdog Which? has also revealed that people are using a number of money saving strategies to cope with the financial strain of Christmas.
The survey also found that nearly one in five people will use a credit card for the majority of their Christmas related purchases.
There are a range of credit cards available that offer cash back rewards. These include Capital One’s World MasterCard, which offers 5.0% cash back on purchases for the first 99, and the American Express Platinum Cash-back credit card. This offers 2.5% cash-back on purchases for the first three months.
Other banks are also offering deals for the festive season. Santander has extended its offer of up to £300 cash-back for customers who switch their bank accountto the bank throughout the whole of December.
The Which? survey also shows that one in four people are planning on buying presents for fewer people this year, in an effort to save money. And a third of us are starting our Christmas shopping early this year as a way of spreading the cost of Christmas.
Other money saving strategies include ‘re-gifting’ – giving unwanted presents to others – and buying an artificial tree, which can be used again next year.
"Cash-strapped consumers are really feeling the impact of rising costs this Christmas. People are being forced to cut back,” said Richard Lloyd, executive director of Which?
“But Christmas doesn't have to be cancelled. Savvy shoppers can save money with online deals, discount days and pre-Christmas sales. You should compare prices between stores and don't be afraid to haggle to get the best price.”