This might sound a little bit weird but you can really save money by using your credit card. And if you act responsibly you could easily save yourself at least £100 a year.

The secret is to use Cashback or Loyalty points or Rewards offering credit cards.

These types of credit cards give you something back for your shopping so you practically never pay 100% of the price on the label.

The idea is very simple. Credit card companies will give you 0.5 - 5% of your spending back in the form of cashback or in loyalty points or in rewards. But it doesn’t apply for cash machine withdrawals or for cheques. So the best practice is to use it for your grocery shopping, petrol, and basically for all the payments where you can use a credit card.

But there is one important thing you have to bear in mind. You have to pay your balance in full every single month. Otherwise the interest wipes out the benefits of using the card.

All you need to do now is to find a suitable card for you.

Visit MoneySuperMarket at http://www.moneysupermarket.com/cards/credit_card.asp to find latest deals.

And once again, don’t forget to pay your balance in full every month and keep the spending at the same level as you would with your debit card.