Consumers snag deals with online coupons, rewards cards

12.11.08
By Sarah Beldo

Are you getting the best deals? That is the question that consumers across the country are asking themselves as they move through the holiday season.

On Black Friday, retailers already saw how the powerful lure of deep discounts can encourage people who have been cutting back on spending to open their wallets.

Now, according to an article in USA Today, businesses are using online coupons to attract many of these same shoppers - who may be trying to pay off credit card debt or boost their savings and do not want to overspend.

Simmons Market Research Bureau noted a 22 percent increase in Americans' online coupon use, compared with winter 2007.

Coupon.com's Steven Boal suggested that people who use his site could average $40-$50 in savings each week - which can add up to around $200 for the month.

But coupons are not for everyone, particularly if you don't regularly buy the products on offer. But there are other ways to save.

For instance, bargain-hunters who are consistently on top of their credit card payments may want to apply for credit cards that offer some type of rewards.

"A lot of people, for example, have rewards cards where they may be racking up frequent flyer miles or cash back if they use those cards during the holidays," consumer advocate Gerri Detweiler told CBS.

This can be an effective money-saving tactic if used carefully, keeping balances low and making payments on time. However, remember that opening up a new line of credit will impact your credit score.

Although a higher level of available credit in relation to debt is seen as positive, opening too many new accounts can have a negative effect in the short term.

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People are turning to the internet to get deals