Did you know to get a coffee machine worth $399 with a typical rewards credit card, you would need to spend roughly $110,000? That’s a very expensive latte.

Here are 3 problems with credit card reward points.

Firstly, you can end up paying more in interest and annual fee than the rewards are worth.

Secondly, the allure of reward points can encourage overspending and impulse purchases.

Thirdly, credit card companies may restrict how you can redeem your reward points or change their terms and conditions.

More importantly, when you use credit card for all your spending, it’s hard to keep track of your money. This lack of visibility and accountability leads to bad spending habits.

Ditch credit cards altogether and instead, using a debit card. This way, you simplify your financial life and spend the money you have. You become more accountable and have more peace of mind.