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Spending on credit for

July 22nd, 2010 at 03:38 am

We all know how credit cards try to lure you with points or rewards. The kind that you can redeem for merchandise or whatever. Why are people so drawn into quote "free" stuff? I don't think they are seeing how much they are spending to get this "free" stuff.

I have an example of someone I know personally who spent literally tens of thousands of dollars to earn enough points to trade in for a kitchaid mixer. Now I personally own a kitchaid mixer and they are quite pricey. This particular model im talking about is around $500. But to put thousands and thousands of dollars on your credit card to get this "free" item just seems ridiculous to me.

You could of saved yourself all that interest that you paid and just bought the mixer for cash. With credit cards there is no free stuff. It all has a price and unfortunately it can be a very expensive price.

Posted in Credit Cards, Debt | 4 Comments »

4 Responses to “Spending on credit for ”

  1. whitestripe Says:
    July 22nd, 2010 at 10:55 am 1279796148
    1279796148

    I think you're only really talking about one type of person here. It's true there are many people like the one you described, but there are many others who handle their money efficiently, and understand the credit card system, using it to benefit themselves and not the credit card companies. I, for one, haven't paid a cent to use my credit card, but have used it to purchase all the ordinary things I would normally purchase otherwise, with or without a credit card, and consistently earn enough points to not only pay my home loan fees, but also gift cards which we give as presents, or buy entertainment with.

  2. creditcardfree Says:
    July 22nd, 2010 at 01:42 pm 1279806158
    1279806158

    Agreed whitestripe. Ryan your post reminds me of taking kids to the arcade that want to earn enough tickets/points to get a large prize. One has to spend quite a bit more on the games earning tickets than the prize is actually worth if bought in a store.

  3. ltj2010 Says:
    July 22nd, 2010 at 03:46 pm 1279813611
    1279813611

    Excellent point Creditcardfree. I forgot about those kids games with tickets. Good thing they dont take credit cards on those machines.

    Whitestipe I wasnt trying to say everyone has problems with credit cards but a lot of people do. If you can use it without costs thats great. I just prefer not to mess with them

  4. Ima saver Says:
    July 22nd, 2010 at 05:31 pm 1279819896
    1279819896

    My husband charges a lot on his credit card at Home depot for building supplies for the houses that he builds. We pay off the card every month (no interest) and earn a $50 check every month.(3% cash back from Chase rewards credit card)

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