Cashback credit cards could contribute to consumer savings

Monday, 14 February 2011 01:47

Using a cashback credit card could help consumers to make the most of their money, according to new research.

Conducted by moneysupermarket.com, the study shows that people looking to maximise their funds could benefit from using a combination of a cashback credit card and a high-interest current account.

By opting for such a card, consumers can earn a monetary reward every time it is used.

Meanwhile, by using a credit card for regular costs, more money can rest in current accounts and accrue interest, the price comparison site reveals.

"With rising inflation rates and the recent hike in VAT, times are tough for UK households and consumers need to be a little more creative when it comes to their finances," comments head of banking at moneysupermarket.com Kevin Mountford.

However, he warns that people should also be aware that if credit card payments are missed, the benefits of cashback are negated.

According to unbiased.co.uk, UK credit card debt has now reached £58 billion.

Use the Myfinances.co.uk comparison tools to find a better deal on a new cashback credit card
 

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