I wrote recently about using cash back credit cards to make money and help you to save some money too. I use my Chase Freedom Visa card in this way and I always make sure to maximize the results that I can get from using the card.
Charge everything!
I do this by firstly charging everything under the sun. If I have the money set aside for something I look to see if I can charge it and then send the money over to the credit card instead of the company.
If your cable company lets you pay your bill via credit card then you should use your cash back card and then send the amount of the cable bill over to the credit card company. It is important to make sure that you send the exact amount because it is like paying with cash in a roundabout way.
Now that Christmas is here I am sure that many of you have set aside money for Christmas shopping. All you have to do is take that money and put it on the credit card. Then you go ahead and shop like you would if you were going to write a check or pay with cash.
Record everything!
Walk around with a calculator and keep track of everything that you pick up. If you have a $100 budget then stick to it. Just because you are paying with plastic it does not mean that you can spend more than you originally planned to.
Pay off the card!
When you do all of this shopping PLEASE make sure to pay off the card. This way you will not have to deal with interest and fees eating away at your cash back reward. If you are unable to pay off the entire thing then you need to reconsider your shopping budget.
Get a 0% transfer!
If you do spend money this Christmas then I would recommend trying to get a 0% balance transfer offer in January if you do not already have a 0% card. Most credit card companies know that people will be looking for a way to ease the debt burden in January so there should be some really attractive offers then. Transferring the debt to a lower interest card should help you a little bit if you do happen to go overboard this Christmas.
That’s the best quote I have seen yet when it comes to credit cards,
Just because you are paying with plastic it does not mean that you can spend more than you originally planned to.
Interesting Net Worth graph you have going on by the way.
Hey Mark thanks for dropping by. I am glad you like the article.
Yeah I know my Net Worth chart is a bit groovy but I have just gotten into the personal finance scene so it is taking me a while to get adjusted.
Plus I only recently started working full time.
I am working on it though and hope to have a smoother, upward trending graph soon. 🙂
Christmas is around the corner and this is a good way to spend money. From what it seems, it works like a debit card.