There's good news and bad news about rewards cards.
First the good news. Despite worry that banks would start ditching rewards cards to make up for their reduced ability to charge fees under the Credit Card Act, most banks haven't changed their programs, say Atlanta bankruptcy attorneys.
The bad news? Rewards cards can be a little bit tricky - sometimes they help you save money, sometimes they make you pay.
At first glance, it seems that all rewards must be a good deal. How can you go wrong by getting money back, right? That depends.
First, make sure you have the right card. Obviously, if you're a frequent flyer on a particular airline, you could put their card's mileage points to good use. If you have kids, a Disney card that helps pay for a yearly trip would make sense. But keep in mind that different cards offer different values - for instance, sometimes your points may come out to a 5% reward for each dollar you spend, while others might offer less than 1%. Some cards may allow you to accumulate an unlimited amount of rewards, some may max out at $500. And make sure to read the fine print - when you finally book that dream vacation, you don't want to find out all your travel points just expired.
Most importantly, don't forget that you're technically buying those rewards points. If you're purchasing things that you already need, then it's like you're getting a rebate. But purchasing things you don't really need just to get points doesn't make sense. Nor does earning rewards when you carry a balance - any money you get back is being canceled out by all that interest.
In the end, rewards points can be helpful or hurtful - you have to make the call. And if you ever do end up with too much credit card debt, it's up to you to get help. The right bankruptcy plan has the power to put you back in control of your finances once and for all. And right now it's free to find out more about bankruptcy when you try a complimentary personal debt analysis with one of our Atlanta bankruptcy attorneys.
