Monday, 19 October 2009

Cashback - worth it?

Moneysavingexpert.com hits the nail on the had when it says that these only work if you pay off the balance in full each month. So this won't generate any significant savings for me for this project. But I'll mention them anyway, since I considered them.

Now I do have the opportunity to switch to such a card, but as per the last credit card post, I can only get to the 'pay off in full' situation in six months.

Assume I do pay off in full though, is it worth it?

My own provider offers a 1% cashback card that I can switch to whenever my balance is paid off.

So for every £100, you earn £1 back.

Now, to earn anything significant, you really have to shift all the spending you can to that card. So I would have to shift £10k of spending to the card to get £100. Which I think is doable.

But really, shouldn't the priority be to cut spending? I don't think I'd want that level of spending period. I'd probably only get around £50 myself

I guess it is good if you can't avoid it, £50 is after all better than nothing.

So I think I'll go for one once this project is over. £50 would cover a christmas present for the ladyfriend nicely. Won't say no to extra cash either.

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