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Without Overspending: Four Methods to Collect Cashback Rewards


Cashback rewards are an outstanding perk that makes your credit card work for you. The catch, however, is how to accumulate those financial bonuses without overspending. In 2010, the Wall Street Journal examined how many people often become so focused on obtaining those rewards, they toss their budget aside and incorporate poor money management only to procure these rewards. The publication’s study determined this scenario occurs quite frequently.

In fact, when the average consumer begins a cashback rewards situation for 1%, they generally receive $25 every 30 days, but their spending increases by $68 and their balance would be an extra $155 for that billing cycle.

You don’t have to owe anyone money to reap all the benefits of your rewards card. Here are four ways you can collect cashback rewards, debt-free without overspending.

Your Card Should Fit Into Your Lifestyle Without Overspending

We cannot stress enough how essential it is to select rewards cards based upon how you live your life and what your habits are. Choosing the perfect card is no walk in the park, as they are not formulated specifically for your needs, wants and desires. To credit card companies, you are targeted as part of a researched group, so you will need to take the bull by the horns and assess what is right for just you. This strategy will ensure you receive those rewards without overspending.

Employ that Card for Day-to-Day Expenditures

Instead of using a rewards card to say pay for gas or for a meal out, many consumers immediately focus on how they need to spend more money in order to receive more money in return. They do not even consider a plan where they take advantage of the rewards program without overspending. Not only is this mindset going to place you on the path to financial ruin, you already do your fair share to boost the economy. Don’t change your spending habits, just incorporate the rewards card to pay for them. Simply use this one card for your expenses and then resolve the balance in full at the end of each billing cycle.

Buy Big with Your Rewards Card

Have you been eyeballing that BOSE system, or your closet needs some freshening up, or maybe that laptop is ready to die? All of these transactions pose perfect opportunities to utilize your rewards card. In one weekend of shopping, these purchases will boost the amount spendt and in turn, will enhance your points. Also, keep in mind credit cards do provide extra protection against fraud, etc., when they are used for these types of purchases.

Remember, the only way to derive a real benefit from this approach is if you have the necessary resources to pay for it on the spot anyway. If you do not already have the funds, you truly cannot afford these purchases and it would be living beyond your means. Since the main point is to collect cashback rewards without overspending, don’t allow your head to be turned by the possibility of rewards. You don’t want to go into debt to attain them.

Pay Off Other Bills With the Rewards Card

The majority of the American public carried other debt than that associated with credit cards. How about car insurance, a cell phone bill or cable payment? These debts can be satisfied by using a credit card, so go ahead and use it. It’s the same premise we mentioned earlier though. If you do not have the cash on hand to pay for them without the credit card, do not incur more debt thinking of all those rewards. Put the credit card away and wait to use it until you do have the funds. Debt is not the way to collect rewards points without overspending.

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