Hello my dear finance interested readers of my frugality blog,
This episode is kinda different. It is not a something I want you to try, more something you should be aware of to use it with caution. So what is my caveat?
Let me start with an observation first. I am pretty sure you no these people that pay the whole bill at a restaurant/bar trip with friends and get the partial money from everyone else afterwards in cash or wired? You might have asked yourself: are they kind and don't want the waiter to have more to do? Well maybe, but the main reason is that paying with a credit card gives the users some kind of benefits. This could be in terms of bonus points or saveback programs.
At first that sounds smart sacking those points for the whole bill, escpecially if you are the only one having such a card. On second glance it could trap you in debt as the credit card companies want it to happen. If you look to much at those benefits you get by paying with your credit card and not what this debt you take on costs you it can get ugly first.
Now you might say: I always pay my credit card at the end of the month...well OK, there are still annual fees that need to be compensated by those benefits and you are always at risk to fall in a debt trap...
That is why it is so important to be super careful with credit cards.