Finance Money News

It's been recommended that people shoudl try and avoid using their credit cards and store cards over the Christmas period, and instead, save earlier.

This can be considered particularly good advice when we read that store card and credit card interest rates are shooting up. It's also becoming increasingly difficult to be granted a credit card/store card, and with the financial turmoil at the minute, will also be increasingly difficult to pay the balance back.

According to the Birmingham Midshires, 78% of Brits are planning ahead this year and budgets have also fallen by an average of £102, to £604 spent on festivities.

Over 50% have also said that they will be spending less on gifts this year and over a third will be re-using last years christmas tree.

Shoppers have been urged to use their reward credit cards to cover the cost of household payments. According to American Express Platinum Cashback Credit Card, by paying for goods with a debit card, consumers are missing out on earning hundreds of pounds of free cashback a year with a reward credit card.

The advice is of particular importance at the moment, seeing as 89% of people are paying more for their household costs than they were doing a year ago. Amex also added that each household could earn £380 cashback in the first year of owning a reward credit card.