Credit Card Rewards: A Costly Mistake?
Update: 2025-12-08
Description
Chasing credit card rewards can be a costly mistake if youre carrying a balance, as the average interest rate is around twenty percent. This pursuit of points often leads to accumulating debt, with forty-four percent of cardholders carrying month-to-month debt. Financial experts advise focusing on debt payoff strategies first, and only then chasing rewards once youre debt-free. Additionally, rewards can lose value over time due to expiration dates or devaluation, making it important to earn and burn them strategically. Understanding your credit cards interest rate is crucial, as avoiding interest is key for rewards to be beneficial. The best approach is to only spend what you would have anyway, on necessities, and pay off the balance immediately.
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