Survey – Credit Cards Incentivize Overspending

Are you motivated by credit card rewards?

WalletHub conducted a national survey of consumers and credit card rewards. They found that 61% of people think that rewards incentivize overspending. 1/3 apply for a new credit card at least once a year to take advantage of sign-up bonuses. 4 in 5 are more interested in earning rewards because of inflation, and a majority go out of their way to spend money with companies that give them extra credit card rewards.

Now credit card debt is a serious issue. Self-control is vital to avoid overspending. Many times, it’s an issue of discerning between needs and wants. Anyone on a tight budget should avoid going to places or being with people, where you’ll be tempted to overspend. Resolve to pay off your cards every month. Otherwise, your rewards will be wiped out by interest charges, and if you carry a credit card balance, you should not apply for another card or you’ll multiply your pain. Determine if the annual fee is more than you would receive back in rewards. Aim to spend less than you earn by keeping track of your spending. Trade bad spending habits for good ones. For example, stop eating out to cut your food costs. Instead, plan your meals, buy groceries and cook at home. Analyze how much time you spend on social media and TV versus time thinking about how to increase your eternal rewards. Start and end each day in thanksgiving and be content with what you have. The peace you gain is far greater than any credit card rewards!

And if you need help with overspending, we can help. Our budget coaching program can put you on the road to financial freedom. Go to crown.org and click the “Get Help Now” tab. You can start today at crown.org.