How To Use Credit Card Rewards Smartly
One of the attractions of having a credit card is the reward system…and yet so many people end up not enjoying their rewards or benefiting from their rewards but end up struggling to keep up with their payments and getting no rewards! Why is this?
One major reason is that reward credit cards come with very high interest rates. Some people spend more on their reward credit card just for the purpose of collecting points without paying attention to their monthly balances. As a result, they have to put off their monthly payment and get charged with a high interest.
It is easy to lose control of your spending if you do not keep a a sense of obligation and self-discipline. One thing to remember about reward credit cards is that the rewards should come as a bonus, a perk, an incentive. It should not be the primary reason that drives you to spend more on your credit card than what you really can afford!