Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Cashback credit cards are useful for shoppers who plan their spending, whether that be for Christmas, in the New Year to take advantage of enticing sales or just everyday use. These credit cards reward spenders with a percentage of cashback based on how much they spend online or in store. The amount of cashback each credit card provider will pay does vary, but so does the interest they will charge on the debt, which is why maximising the cashback is wise, but so is paying off any debt before interest applies.

“One provider to offer an additional incentive for shoppers is American Express, as from 1 until 3 December, it will give customers a £5 statement credit when they spend £15 or more at participating small businesses across the UK through its popular Shop Small Offer. As consumers will notice, this is a limited period for shoppers to maximise the reward, and they will need to enrol for the offer to take advantage. Credit cards are also a good method to use for spending in general as shoppers are protected under Section 75 of the Consumer Credit Act.

“Away from credit cards, shoppers would be wise to make the most of any loyalty cards they possess. As it can be easy to forget the card when out shopping, consumers could download an app call Stocard and store all the cards in one place which can be scanned at the till. Now is the perfect time for shoppers to cash in those loyalty points, such as with Sainsbury’s Nectar and Tesco Clubcard schemes to go towards the festive spend.”