During the holiday season, spending money is inevitable for most Americans. With gifts to buy, loved ones to visit, and events to attend, we have to pay for it somehow. And while we want to keep our spending at a reasonable level, we also need to be smart about how we pay for things this time of year and that’s where most of us are making a mistake.
A recent survey from YouGov finds that only 30% of Americans are planning to use only credit cards for holiday travel and just 19% are using credit cards exclusively for gifts. That means the majority of folks are planning to use debit cards, cash, or a mix, but it turns out, charging our holiday spending on a credit card would be the smartest move for most of us.
There are several reasons for that:
- For one, credit cards offer generous rewards that debit cards and cash don’t, so not using them means you’re missing out on points, cash back, or miles.
- Many credit cards come with extended warranties for purchases and you don’t get that with a debit card.
- Some credit cards also offer purchase protection that reimburses you if your items are stolen or damaged in a short time after you buy.
- Return protection is also offered by some credit cards, which helps you deal with merchants who make returns difficult.
So using credit cards for holiday spending is the way to go for most people because of all those perks. But for people who have a hard time controlling their spending or won’t be able to pay off the bills before getting slapped with interest charges, cash is still the way to go.
Source:The Motley Fool