Loyalty schemes used to repay credit card debts

Those Aussies on the search for a credit card should ensure that such a product is selected with care, it has been reported.Indeed, former doctor Adir Shiffman points out that although some form of card fee is likely to be charged regardless of the produc

Consumers are increasingly making use of loyalty scheme points accrued on store cards to get to grips with various financial commitments, it has been revealed.

Indeed, one area people appear to be concentrating on tackling is credit card debt as shopping rewards programme provider FlyBuys reveals that the level of redemptions for shopping vouchers and credit card repayments stood at some 82 per cent during the first five months of this year.

During the same period of time in 2008, this accounted for 77 per cent, the Sydney Morning Herald reports.

Meanwhile, 23-year-old marketing executive Melissa Liao reveals that she uses the points acquired on her ANZ First Visa card to buy cinema tickets and groceries.

Andrew Willink, executive chairman for RateCity, states that although people are cutting back on their expenditure during the downturn, as points on such schemes are still being accumulated using them to pay for essentials in the current economic climate could be a wise idea.

Research by the Reserve Bank of Australia recently revealed that Aussies are 23 per cent more likely to use a credit card if it has some form of reward or loyalty program attached to it.

Written by Kate Guthrie