There are a lot of things that we picture when we imagine our lives 5 years from now. We think about the big, extravagant house and car we are going to have, your wonderful relationships and all the money that you will finally have after your years of hard work. Many people today add paying off all of their debt to that list. Debt has become a big issue that affects the lives of many people and the aspirations of many businesses. What most people forget to think about is how they are going to create this financially stable future for themselves. Even more unrealized is the fact that the very thing that puts a lot of people in debt can also be the thing that relieves their debt. By using a rewards credit card correctly, you can not only eliminate your debt, but you can set yourself up for a more promising financial future. Here are some ways that a rewards credit card can improve your financial future.
You can invest in your future financially
Investing requires a lot of cash, especially when you are first starting out. Of course, you want to start investing early in life, so that your investments have more time to grow. Using a rewards credit card can help you use your paycheck for investments and still have credit to use for the necessities of life.
You can keep some open credit for emergencies
“Everyone should have an emergency fund, but having open credit is a way to give you that security without tying down a lot of your money,” says Chris Mettler of CompareCards.com.
It is a good idea, even if you have an emergency fund set up, to leave some open credit in your name. Choose a credit card with a high limit that you can still use regularly while maintaining a good amount of open credit. This can build your credit and give you options when money is tight.
You can pay off high interest debt
It may seem like a never ending circle, to pay off debt by creating more debt on a credit card, but this method has worked well for many. You can use a low interest rewards credit card to pay off high interest debt, so you will pay less money in interest and receive rewards points. You can even consider a balance transfer credit card with a rewards system to pay off your debt.
You can earn rewards on the money that you spend
The best and most relevant benefit of a rewards credit card is, you guessed it, the rewards. People have been singing their praises about rewards credit card since we finally figured out how to use them. You can get cash back on the money you spend that you can put towards your credit card balance or anything else you want using your debt card. You can also double your points by using a rewards card that gives you extra rewards at certain businesses, like airlines and hotels. This can give you the financial freedom that you always wanted.