Reward yourself for christmas spending

An almost audible groan from your letterbox, as the postie delivers your credit card statement, confirms what you suspect but really don't want to face — you spent way too much over the festive season.

Now you’ve got to deal with the spending hangover! It's not all bad though. Chances are your big spend has resulted in big rewards points, the redemption of which may ease the pain somewhat.

Rewards come in all shapes and sizes — frequent flyer, lifestyle, entertainment, shopping vouchers, food, wine, cashback and much more.

One type of reward that is being increasingly offered by institutions is the charity donation. Over the past few years many more charities have been added to the list of reward redemptions.

Now it is possible for you to redeem your charity rewards in any number of ways, from donating a goat to an African village to making dreams come true for terminally ill children.

Shopping vouchers are by far the most popular items redeemed by those holding rewards cards. Airline points are next in the popularity stakes, followed by the myriad goods and services offered to the cardholder.

RateCity notes that there are 270 credit cards available with a points-based rewards program attached. There are many others which offer instant, non-points based rewards such as two-for-one deals at places where you regularly shop.

They say good things come out of bad and all that Christmas over-spending may well be for a reason. The points accrued can now be used to reward yourself with a little something just for you or, better still, a feel-good donation to the charity of your choice.

By Andrew Willink, executive chairman, RateCity.com.au

For the complete story see Money Magazine's February 2008 issue. Subscribe now.