And despite the ongoing recession, the survey found that 53% of people aren't planning on cutting back this year. However, even if you don't intend to tighten the purse strings, there are ways to make your money go further or get something back on your spending.
Pre-Christmas sales, special offers and discount vouchers are obvious ways to get more for less - visit our voucher section for the latest offers. But another great way is to use a cashback or rewards credit card for all your spending.
If you don't already have such a card, it's probably too late to get one now in time for your Christmas shopping but if you're planning to hit the January sales, or know there are significant purchases ahead - perhaps like me, you're about to move house, or maybe you're getting married or about to have a baby - then consider applying for one now.
Peter Harrison, moneysupermarket.com's credit card expert, said: "The key thing with cashback or reward cards is that they are only worthwhile if you pay your credit card off each month. If not, the benefit will be wiped out by the interest you'll be charged. But if you do clear your balance every month, then there are some great deals to be had."
Here's a run down of some of the leading cashback and reward cards:
Cashback
When it comes to reward cards, American Express is probably the leader in the field, with a host of different offerings. This is the most generous cashback card on the market and it's aimed at high spenders. You earn 5% cashback for the first three months up to a maximum spend of £2,000 - so in the first few months alone you could net yourself £100 just for putting your shopping on the card.
Once the introductory offer has ended, you then earn 0.50% on the next £3,500 spent on the card, 1% on spending between £3,500 and £7,500 and 1.25% once you've spent more than £7,500 with the card.
The standard rate of interest is high at 19.9%, so it really is important to make sure you pay your balance off each month.
Bear in mind that Amex isn't as widely accepted as Visa and MasterCard, so there may be times when you can't pay with this card. Also, Amex cards are notoriously difficult to qualify for, so unless you have a squeaky clean credit history you have little chance of your application being successful.
If you'd prefer a cashback card to one that offers rewards (many people do because they never get around to spending reward points), this is another option. It's not as generous as the Amex card and there is a £1 monthly fee, but even so it offers the opportunity to earn £200 cashback a year, which shouldn't be sniffed at.
You earn 1% cashback on all spending, although as mentioned above, the maximum reward is capped at £200 per year. You also get free purchase protection, which insures you against damage or loss for 90 days, and 12-months' extended warranty cover on electrical items costing more than £50.
The standard interest rate on this card is 16.9%.
Rewards
There are loads of cards offering reward points. What these can be spent on varies, so before you sign up for a rewards card it's worth checking.
This is quite a flexible reward card as points can be exchanged into cashback, which is credited to your credit card account, or they can be redeemed for vouchers from a number of high street stores such as John Lewis and Debenhams. You earn one point for every pound spent on the card and 5,000 points equals £20 cashback.
It's therefore not as generous as the Amex card mentioned above as you'd need to spend £25,000 on the card to earn £100 cashback. But it's a Visa card, which is more widely accepted than Amex.
The standard rate of interest is 15.9%.
Airmiles is one of the most popular loyalty programmes. With this deal you get two cards (but only one PIN). One is an American Express card that gives you one Airmile for every £10 spent. However, because Amex isn't accepted everywhere, you also get a MasterCard. The reward for spending on this card isn't as generous - you earn one Airmile for every £50 spent on the card.
Airmiles can obviously be used for flights, but there are other things your miles can be exchanged for. They can also be spent on days out, hotels and car hire.
The interest rate on this card is 15.9%.
Sainsbury's Credit Card
If you're a regular shopper at Sainsbury's, this could be a great card.
You earn Nectar points each time you spend on the card - two points for every pound spent in Sainsbury's during the first two years and one point for every £5 spent elsewhere. You can also still use your standard Nectar card as well (where it's accepted) which means you build up points more quickly.
Another attractive element of the this credit card is that it offers a 10-month interest-free period on both purchases and balance transfers. Such a competitive 0% offering is unusual for a rewards card.
The Egg and MBNA products mentioned above have competitive balance transfer offers but I didn't mention them because the whole point of a rewards card is to get something back for spending. If you make a balance transfer onto either of these cards you'll be caught out because your monthly payments will go towards paying off the cheapest debt first ie. the transferred balance. You'll then be charged interest on your purchases which will outweigh the value of the rewards.
The Sainsbury's Credit Card is the only reward card where you won't lose out by transferring a balance.
The standard rate of interest on this card is 15.9%.
Tesco Clubcard Credit Card
The Sainsbury's card won't appeal if you do your weekly shop at Tesco, but Tesco's Clubcard Credit Card might. It offers a 12-month interest-free period on purchases, so you can benefit from being able to spread your repayments as well as being rewarded for your spending. You should clear your balance by the end of the interest-free period as you'll be charged interest at 15.9% thereafter.
You earn one Tesco Clubcard point for every £4 spent on the card. You can also use your standard Clubcard for your Tesco shopping to earn more points (you earn two points for every pound). Clubcard points can be exchanged for Tesco vouchers - 100 points is worth a £1 voucher. You can also exchange points for Airmiles - a £2.50 equals 60 Airmiles.
Marks & Spencer Credit Card
This is a great option for fans of M&S. You earn one point for every pound spent in M&S and one point for every £2 spent elsewhere. You can then exchange your points for M&S vouchers - 100 points is worth a £1 voucher.
Credit card customers also receive exclusive bonus point offers from time to time.
The annual rate of interest is 15.9%.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.
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