By: Mirage Ratnayake
The TV ad, online ads and printed materials has been inundated with their taglines. With promising reward points and attractive rate is their target market.
Even if you already have a reward card, you’ve probably seen an unbelievable number of offers from the credit card companies in your mail lately.
Rewards are very effective traps that a lot of credit card companies and banks use to effective lure more and more of their clientele into debt. This is one of the prime reasons so many people getting into trouble with their mortgage and credit cards. They let their balance and payments get away out of control because they didn’t realize the repercussions of having so much debt. Eventually, you have to pay it back and at some point, if you keep spending, you’re interest payments will far outweigh your initial cost.
Credit card companies can be sneaky sneakers. They have trickster ways that entice us to spend more and offer reward programs with, travel rewards, pay off less, interest free and dig ourselves deeper into credit card debts.
There is no such a thing called free ride, banks and other financial institutions are in the business to make money, not give it away and they will try anything to dig further into your pocket. The entire system is designed to get you in debt and keep you in debut and you could almost consider a credit card the new form of “indentures servitude”, you are working to pay off your debt every month, sometimes for many years. Putting yourself deeper into debt in order to receive nominal benefits just isn’t worth it. If you’re one of those few people who can pay off your balance each month then it might be worth it but most people don’t do this.
Cash is king when it comes to credit card rewards program. Having the freedom of cash has a lot of benefits. Using cash to make your purchases have more advantages over credit cards payments. If you use the cash to purchase of something the benefits you having is:
• No fees
• You will be able to keep track how much you spend
• It’s your own money rather than using some else cash
• Over spending
• Most importantly debt free.!
Consider using a debit card. It does the same thing and many banks offer it as part of having a savings or checking account with them. This is a Hassle free way of using a card that immediately withdraws the money from an account with them. It keeps a way hassle having a credit card and worrying to pay the credit amount end of month.