By and large, credit cards get a bad rap. Many believe that they are simply a fast-track route to debt.

That's only the case if you spend more than you can afford on them, however. If you simply switch your spending so that you buy almost everything you need on your credit card, it can save and even make you money.

The first and most obvious benefit of paying with a credit card is that there is a period of weeks, maybe longer, from when you make your purchase to when you actually have to pay for it. The exact length of time depends on how long it is until your card's next monthly due date.

During this time the money you would otherwise have spent will still be in your bank account, where it should be earning you interest. When the monthly due date comes around, simply pay off the whole balance outstanding, and pocket the interest. If you use your card for all your routine spending - food, clothes, gas, power bills, and so on - simply doing this can generate several hundred dollars a year in additional income for you. Just remember to pay off your credit card balance in full every month, to avoid getting charged interest.

But it doesn't stop there. Many credit cards nowadays offer cashback on spending (if your present card doesn't, apply for one that does). With cashback credit cards, for every dollar you spend, the card company will give you back some money, usually in a single payment made once a year.

The amount paid back is calculated as a percentage of your total spending. Percentages vary, but typically range from 0.5% to 2%. Some card issuers pay higher rates for purchases in some categories or made through certain retailers. The Discover Platinum Card, for example, offers up to 1% cashback normally, but 5% on purchases made from selected merchants in their Get More Program.

By making most of your purchases using these two methods, you should be able to generate a substantial extra sum from cashback and interest received. It's the equivalent of giving yourself a payrise! Just a word of caution, though. With certain items, if you pay by credit card a surcharge may be imposed. Low-cost airline tickets are one example. In these instances, it is better to pay with a check or debit card (or even cash!).

And, though it should hardly need saying, NEVER use your credit card as a means of borrowing money. You will be charged interest from the day you make the transaction, and may be charged an administration fee as well.