We are all familiar with the lure of credit cards that have rewards systems associated with them. The famous credit card trick is to put your bills on your credit card, get the points or miles, and then pay the bill off at the end of the month. Here are a couple of things to keep in mind:
1) If you juggle payments and ever drop the ball, the late fees or other penalties you may face could be greater than the advantages of rewards.
2) Depending on how good you are at balancing your finances, this can put you at risk for spending more than you have. If you attempt the credit card juggle make sure that you can play the balancing act.
3) Perhaps most important to think of, is the lure of points. Study after study shows that people spend more money if they have a credit or debit card versus cold hard cash. Just trying to go out with twenty bucks in your pocket and I’d bet you that you’ll spend $20 or less one way or another.
In the end I can’t help but think that credit cards companies aren’t stupid. Their aim is to make money. They are the ones making money, and America is paying for it. They don’t loose out on reward programs. If they don’t loose, who does? I’m afraid that might be you and I, even if that means you get your next plane ticket for free, you might have already paid for it one way or another.
I look forward to getting comments from everyone under the sun, claiming to have beaten credit cards at their game. If you do think you have beaten the game, let me know how much you’ve gotten in rewards versus any late fees you’ve paid or extra you might have bought just to get the points. I hope you have because I’d rather have you win than visa.
Happy Juggling,
Miel
