Cashback credit cards pay you back a proportion of what you spend on them each time they're used.

rovided you avoid interest by setting up a direct debit to pay each one off in full at the end of the month, you're effectively turning it into a debit card which pays you £100s a year. Timing is crucial; the current top card, Amex's Platinum Credit Card, pays new cardholders five per cent cashback for the first three months, followed by a tiered 1.5 per cent thereafter. Apply now and by the time it arrives, we'll be in prime Chanucah spending season plus the high cashback rate will last right into the January sales. And unlike debit cards or cash, buy something costing over £100 on a credit card and you get section 75 of the consumer credit act protection. This means the card issuer's equally liable with the retailer if things go wrong; so it's perfect credit-crunch protection.