Make money spending money
1) Get a cashback credit card
If you pay for goods with a cashback credit card, you get a certain percentage back for each £1 you spend. So that literally means you'll get paid for spending!
When deciding which one to go for, bear in mind that some cards have tiered rates of cashback. So if you spend more than say £10,000 a year on the card, you may qualify for a higher rate than if you only spent £1,000.
There's an easy way to get around this if you trust your partner. Take out an associate card which he or she can use. This means every £1 your partner spends will build up cashback on your card as well, increasing your total spend. Just be aware that you - and you alone - are still responsible for paying the entire bill, including anything your partner spends.
It can be hard to get your head around paying for even the smallest items with your cashback card, but it really is worth it when those pennies start to add up. And it's a great feeling handing over your card and knowing you're getting something back, too.
Finally, don't forget that purchases you make over £100 are covered under Section 75 of the Consumer Credit Act 1974, something you just don't get by paying by debit card.
So, in a myriad of ways, you really can be significantly better off. But make sure that you always pay off your balance in full each month - or the money earned in cashback will be negated by the interest you will have to pay on your debt.
2) Use a cashback website
If you shop online, it's worth checking other cashback options. Several sites - such as Quidco, Top CashBack, RPoints and GreasyPalm - will give you back a percentage of what you spend (in cash or vouchers) if you use them.
Cashback is generated from the commission retailers pay these websites for the purchases you make. Amounts of cashback vary, and can be a percentage of your total purchase, or a flat fee, depending on the retailer and the product you purchase.
The great thing is, won't pay more for your goods if you shop through their sites. You click a special link which takes you to the merchant site, where you can continue to shop as normal. You won't pay more and warranties and guarantees apply as they would normally.
Each one operates a slightly different membership system and payment scheme.
Quidco levies an annual admin fee of £5, which it claims by keeping the first £5 cashback earned as an annual subscription fee. Top CashBack, Rpoints and Greasypalm are free. The downside is, sometimes these site do not have as good cashback rates as Quidco.
To find out which site offers the most cashback at the retailer you are buying from, use smartcashback.co.uk to compare cashback rates.
Bear in mind that some sites also reward you for referring a friend. GreasyPalm pays £7 per referred friend and Rpoints rewards you with 500 bonus points.
Read Earn cashback on everything to work out which is best for you.
Compare cashback cards at lovemoney.com