I’ve written a lot about using a cash back credit card to earn some money back on your everyday spending. But it isn’t very smart to use a rewards credit card when you’re struggling with credit card debt.
Think about the 1 or 2 percent you’ll earn on your spending versus the 19 or 20 percent interest you’ll be charged if you don’t pay off your balance in full. Not a good idea!
So if you’ve got credit card debt that you’re determined to pay off quickly, you’ll want the lowest interest rate possible.
For example, say you carry a balance of $5,000 on your credit card at the standard 19.99% interest. By switching to a credit card with 0% interest for 12 months, you’ll save $1,000 in interest charges.
Switch and Save
Right now, Rate Supermarket has a promotion where you can get a $100 gift card to Amazon.ca, Future Shop, Boston Pizza or Starbucks when you sign up for the MBNA Platinum Plus MasterCard or the MBNA Smart Cash MasterCard.
The promotion is called switch and save. See how much you can save by paying down your credit card debt interest free for a year with Platinum Plus, or by boosting your credit card rewards with Smart Cash. Sign up for this offer here.
Now let’s take a look at some great articles from around the web this week:
From the major media
- Dianne Nice from the Globe and Mail writes about why we hate redeeming reward miles
- Jason Heath at the Financial Post says young people are becoming more financially savvy
- Adam Mayers from the Toronto Star looks at tax free savings over-contributions
- Jon Chevreau at MoneySense writes about the days after Findependence Day
From the blogs
- Free From Broke asks is telecommuting bad for a company, and looks at Yahoo’s decision to ban it
- Timeless Finance wonders if you would date somebody who’s in debt?
- Young And Thrifty lists 5 benefits of separate chequing accounts
- Andrew at She Thinks I’m Cheap sold RioCan and Shoppers Drug Mart shares
- My Own Advisor looks at some equities built to last in your portfolio
- Canadian Couch Potato explains why you should avoid DRIPs in taxable accounts
- The Passive Income Earner looks at the Smith Manoeuvre and when you should consider it
- Retire Happy Blog explains the difference between marginal tax and average tax
- Canadian Finance Blog asks how much of your money is actually being invested?
- Financial Uproar wonders why the PC Financial free chequing account doesn’t get more love?
Have a great weekend, everyone!