Cash Back at What Cost

One of the most advertised credit card perks is cashback but wait there is a catch!

It could be you have to spend a certain amount or purchase certain items.  Then of course you are also limited with how you receive that cash back. 

·        Is it a credit on your card at a specified time of the year? 

·        Can you opt to cash in points earned for a credit on your card?

·        Is there an annual fee attached to that card?

·        Do you get the cashback to use for something else? [savings perhaps] 

·        Does the annual fee cost just as much as what you earned?

If you are inclined to charge away and not pay your monthly balance in full each month are you:

·        Subjected to crazy high interest rates?

·        Spending beyond your means?

·        Paying interest on interest?

Has that cashback perk outlived its usefulness?

This is a great time of year to sit down and review exactly how well that credit card has treated you.

·        How much did you spend?

·        What were your total interest charges?

·        How much was your annual fee?

·        What was your total cashback benefit?

·        Did you purchase more because of the cashback offer?

·        Did you profit or have a loss when all was calculated?

#1 Rule:  If you are paying an annual fee to receive a cashback perk and the result is that it barely paid the annual fee you were charged – it is time to consider getting rid of that credit card.

Do the math – it might surprise you with the results!

I invite you to participate in one of my clarity masterminds: Money Vision & Goal Setting take a peak it might just be something to give you that balance you need to create the habits and build your routine.

As always if you have any questions just reach out and contact me.