With money tighter, it's time to make your pounds go further with careful shopping.
If you're one of the 50% of credit card holders that pays your balance off in full each month, consider applying for a card that rewards you for spending (if you haven't already got one).
Interest in reward and cashback cards is increasing and it's easy to see why: for every pound spend on one of these cards you earn a reward point or cashback. Over the course of the year the value of this benefit can really mount up.
I have a cashback card and while the latest bill made me gulp slightly, the pain was lessened when I saw that my cashback balance is currently over £80.
Of course, reward cards are only of value if you pay off your credit card bill in full. If you don't the interest you're charged will far outweigh the value of the cashback or reward points.
So what's available?
The AA has just launched a new rewards credit card. It's available to AA members and non-members, although members receive a more generous rate of reward. For every £1 spent on motoring costs, which include car servicing, tyres, MOTs and fuel, AA members will earn 2 points with non-members earning 1 point per £1 spent. For all other purchases AA members stand to earn 1 point per £1 spent with non-members earning 1 point per £2 spent on the card.
As with many 'reward' cards whether you get maximum benefit will depend on your shopping habits. Obviously those with AA membership benefit most from this card. If you're not a member or don't spend much on motoring costs, there may be better options.
If you do your weekly shop at Sainsbury's or Tesco, their credit cards are worth considering.
With the Sainsbury's Credit Card you earn four Nectar points for every pound spent at Sainsbury's and two points per pound for shopping done elsewhere. You can collect additional points if you have a Nectar card as well. Points can be redeemed for Sainsbury's vouchers and a host of other things such as experience days, Eurostar tickets, magazine subscriptions and spa days.
If you're a Tesco shopper its Clubcard credit card will offer greater value. Customers receive five Clubcard points for every £4 spent at Tesco and one point for every £4 spent elsewhere. You can also use your standard Clubcard as well to accumulate more points. Like Nectar, Clubcard points can be exchanged for loads of different things. It's worth pointing out that you can also change Clubcard points into AirMiles.
Another option is a cashback card. Rather than collecting points which you then redeem, you accumulate cashback over the course of the year. You'll then receive an annual cheque or the total cashback you've earned will be deducted from your monthly bill.
The most generous cashback card is the American Express Cashback Platinum and this is a great card to consider in the run up to Christmas, when you're monthly bill is likely to be higher than normal. You receive 5% cashback for the first three months, up to a maximum spend of £2,000. The cashback rate then drops: you earn 0.5% on the next £3,500 spent on the card; 1.0% on spending between £3,500 and £7,500 and 1.25% on spending above £7,500.
What if I don't pay my credit card off in full?
If you'll need to spread the cost of Christmas look for a credit card that offers an interest-free period on purchases.
This would usually rule out reward cards as they tend not to have 0% offers as well. However, the good news is that the Sainsbury's, Tesco have interest-free periods on purchases, so you can earn a bit back on your Christmas shopping bills repay them gradually.
Another card worth considering is the Halifax All in One Card - it doesn't pay cashback or reward points but it is interest-free on both purchases and balance transfers for nine months.
To compare the leading credit card deals more closely, visit our credit card channel.
And don't forget, the other 'must-do' before you start your Christmas spending spree...
Check out what discount vouchers are available. With many retailers struggling to get the tills ringing there are discount vouchers galore to take advantage of.
From 15% off at Debenhams, 10% off at The White Company, 20% off Christmas decorations at Argos and half price West End theatre tickets there are loads of ways to trim the cost of Christmas without having to cutback on what you buy and give.
Moneysupermarket.com's re-vamped voucher channel has literally thousands of vouchers so make sure you take a look otherwise you could be spending far more than you need.
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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