Friday 30 October 2015

When Credit Card Rewards Becomes A Danger

By Cornelius Nunev


One of the benefits of having a benefits program tied to your credit card is all the stuff you can earn, from goodies and airline miles to cash back. However, boosting your charge card spending in order to generate these awards is a double-edged sword that can eviscerate your budget. Here's how to stay away from the perils of extreme credit card benefits spending.

Watch the bill

Knowing how much you spend is the most important step in making sure you do not spend too much on your credit card. You can reign in your spending if you pay very close attention to what is happening in the charge card bill. Never forget that you have to pay interest on top of what you spend.

Write it all down

Write down all your credit card spending to monitor it. If your credit card offers an online program of sorts, try that.

Avoiding extreme credit card benefits spending step No. 3 - Save receipts

How do you keep a precise count of what you are spending? Keep the receipts! You'll need them when you have to return something, and pocketing purchase records makes it unnecessary to write things down on the spot - because nobody likes those people, honestly.

Mint.com a good source

You can link your charge card to Mint.com and monitor all spending at it. The site offers money management tools and budgeting tools to help you keep track of spending.

Checking account to help

Make sure you set up a checking account that is there specifically to pay off the charge card in case you are having serious troubles. The free account should be a second account and only for your charge card.

Staying away from excessive credit card benefits spending step No. 6 - Pay weekly

Some people like to pay their charge card bill every month, but it is much better if you can pay it off every week. It is a good idea to make weekly payments so you can spend as much as you need on the card and still get benefits while avoiding additional interest.




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