Get 5% cashback on your Christmas spend with Amex

As Christmas draws closer and the UK continues to struggle through recession, many consumers will be looking at ways to reduce their seasonal spend.

While shopping around for the best deals is always the obvious thing to do, there are other avenues to explore that may not seem so obvious.

These days, people can get much more from credit cards than simply using them as a means to borrow money. If you don't require credit, don't rule out credit cards, consider opting for a card that rewards your Christmas spending. Customers can be rewarded in a number of ways, from free flights to cash-back.

The American Express credit card, for example, offers its customer one air-mile for every £1 spent on the card, and customers can earn an additional 1,000 bonus miles if they spend £500 in the first three months of activating the card. To benefit from this card, you must pay off the balance in full within the 56 interest free days, as this will allow you to avoid paying any interest.

Cash-back credit cards allow consumers to earn a percentage of what they spend back in cash, effectively discounting all eligible purchases by the cash-back rate offered.

The American Express Platinum card currently offers 5% cash back for the first three months and up to 1.25% thereafter. This means that you can reduce the amount you spent on gifts and festive food by 5%. Again, you must ensure your balance is cleared each month so you can cut any possible interest charges.

Tom Allder, vice president of UK lending at American Express, said the company has paid out an additional 21% cash-back this year compared to 2008 as more customers sign up to the card.

He added that new customers who take the card now "will receive their annual cash-back payout this time next year, which could go a long way in helping to pay for the cost of next Christmas".