If you wonder if you are missing out on a smart money play with credit card points and rewards, stop wondering.
These credit perks are trendy. We hear about people who charge all their monthly expenses on credit cards to earn lots of big points and rewards, from cash back to travel perks.
But with credit card interest rates running 20 percent to 30 percent, this can be a dangerous game.
According to financial guru Dave Ramsey, to earn rewards, you have to spend a lot of money and to make the rewards pay, you have to pay off your credit card every month. One skip and you plunge yourself into credit card debt and completely lose any advantage you got from points and rewards. In fact, if you carry any balance, you are likely paying more in interest than you are earning in rewards.
In addition, the rewards might not be all that useful. Travel rewards can have blackout dates and limited seating options for flights. You will find that to really benefit, you have to become an expert in the complicated world of travel rewards.
