She Strengthens

The Dark Side of Cash Back Credit Cards

As I stepped into adulthood, my mom presented me with a milestone: the opportunity to apply for my very own cash back credit card. I was hesitant, having witnessed the financial struggles of others who had fallen prey to credit card debt. However, my parents, models of financial responsibility, reassured me that if I treated my credit card like a debit card, I’d be just fine.

A Lesson in Financial Discipline

I took the plunge, and after a few months of responsible spending, my bank upgraded me to a cash back version of my existing card. The promise of rewards was enticing, but I soon realized that I wasn’t budgeting effectively. I thought I was spending money on necessities, but in reality, I was splurging on unnecessary items. This mindset led me to apply for another cash back card, hoping to boost my credit score and earn more rewards.

The Reality of Cash Back Rewards

Fast forward to today, and I’m 20 years old with three credit cards and a trail of unnecessary purchases. But how do cash back credit cards really work? The best rewards offer up to 5% on select categories, which means you’d need to spend $2,000 to earn $100. That’s $1,900 that could be better spent on rent, tuition, or investments.

Breaking Free from the Credit Card Trap

I’ve recently embarked on a journey to ditch my credit cards and stick to cash and debit cards. It’s not easy, as the allure of instant gratification and “free money” is strong. However, I’ve come to realize that the fear of missing out on rewards is outweighed by the benefits of living debt-free and clutter-free.

A Challenge to Reevaluate Your Spending Habits

Take a closer look at your wallet and ask yourself: are your credit cards tricking you into overspending? If so, consider cutting them up and reassessing your financial habits. You might be surprised at how much better life can be without the burden of credit card debt.

The Bottom Line

Don’t let clever marketers fool you into accumulating debt. You have the power to take control of your finances and make conscious spending decisions. So, take the challenge and see how your relationship with credit cards can improve.