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"Some could be wasting money by using debit cards instead of credit cards"

By admin | December 26th, 2008 | Cash Back & Rewards, Credit Cards

In the run up to Christmas many people will be hitting the shops and spending a fortune, despite the global credit crunch, and many of these people will be spending the money on their debit cards. Recent figures have shown that around 40% of consumers tend to also do their day to day shopping using a debit card, where as only 20% or so tend to use a credit card to do this sort of shopping.

Some industry officials have suggested that many of the people that are using their debit cards to make payment for shopping, day to day purchases, and Christmas shopping could actually end up missing out on a significant level of cash back or rewards by failing to use a rewards based or cash back credit card instead. In fact, it is estimated that some people could be losing out on several hundred pounds each year as a result of this.

Research was carried out by American Express with regards to spending habits of consumers when it comes to credit and debit cards, and officials from American Express suggested that many consumers that spend money on their debit card would be better off putting this money aside and then using a rewards or cash back based credit card. The consumer can then use the money put aside to pay the balance on the credit card, thus accruing cash back or rewards without being charged any interest.

One official from American Express said: “Each British household is paying out thousands of pounds a year on debit cards for everyday items such as supermarket shopping and petrol. Simply by changing the way they pay for these items, people could be earning themselves hundreds of pounds of free cash.”

Tags: Credit Cards, rewards, american express, cash back credit cards

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