Savers urged to consider other options over debit cards to get ‘free cash’ | Personal Finance | Finance


It’s inevitable that people will use their cards to spend, but there are ways to make the spending one does as beneficial and rewarding as possible. On the Cash Chats podcast, personal finance expert Andy Webb explained to listeners how he will be spending his money this year, and the ways he is making the most out of his money.

Those who use their debit cards to spend money are essentially “losing out”, he said.

Debit cards have their advantages; however, they do not offer people anything for what they spend.

Mr Webb suggested people look into cashback credit cards or debit cards instead.

He said: “The first one I would look at it is the American Express cashback or reward credit card.

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“This is the best way you can make some money if you are not an American Express customer.

“The welcome bonuses are high, but they do come and go.”

Mr Webb explained the massive amounts of savings people can make by using reward cards over standard debit cards.

He continued: “The American Express Preferred Rewards Gold Credit Card has the highest value bonus.


“You have to spend £3,000 or more in the first three months to get 20,000 points.

“It’s got to be used for your everyday expenses. If you do that it will you give you a bonus of 20,000 AMEX rewards points.”

To get the best value for them, he suggested that people should transfer their AMEX points to Avios points, then transfer them into Nectar points.

For every £1 spent on the card, people get one point, so if they hit the £3,000 goal on the American Express card, they could get 3,000 points or more.

For those who may need a lower payment threshold as they know they will not spend £3,000 in month, Mr Webb suggested they can simply use the Nectar card to get points as they spend in Sainsbury’s, Argos and eBay.

Alternatively, Britons can consider the American Express Platinum Cashback Card.

He continued: “You get five percent back up to a spend of £2,500 which means the most you can get is £125.

“But if you do spend less it does not matter, you will still get the five percent cashback on whatever you spend.”

When applying for an American Express card, Andy suggested people going through cashback sites to get money back or using a friend’s referral code for extra cash.

“It is well worth doing,” he concluded.

With credit cards, it is important that Britons do an eligibility test before they apply to avoid any long term financial damage.

The full epsidoe of Cash Chats is available here.

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