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Consumers use rewards to fund everyday spending

Consumers use rewards to fund everyday spending

Category: Money

Updated: 30/12/2013
First Published: 30/12/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

These days consumers are always on the lookout for ways to save some cash, and it seems that many have got it down to a fine art. In fact, according to research commissioned by American Express, rewards and special offers actually account for an average of £1 in every £25 spent.

The research found that redeeming credit card rewards, retailer offers, loyalty points, discounts and shopping vouchers can be instrumental in cutting the cost of everyday living, with consumers able to save a huge amount of cash simply by taking advantage of the deals offered by various businesses.

On average, each shopper was able to save £742 per year through utilising their rewards and vouchers, with nine in ten of those surveyed collecting/redeeming rewards on a monthly basis.

It was found that credit card reward points were particularly useful to consumers, with 17% relying on them for "incidental and unexpected expenditure". Meanwhile, a further 11% used rewards and vouchers as their rainy day funds, rather than keeping cash available for those extra expenses.

Vice president of consumer cards UK at American Express, Heather Laverne, said:

"It's fair to say that rewards and special offers have grown in popularity during the economic downturn. They are now very much part of our everyday shopping experience, helping consumers budget and better manage their finances."

Vouchers and reward schemes show no sign of losing their popularity, and with good reason. These days the average consumer is spoilt for choice – not only are more and more banks and credit cards offering cashback and reward schemes but the rise of the online voucher code means shoppers can save even more, helping keep budgets in check well into the new year.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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