How are you being rewarded?

rewards cards cause more debtWe've all seen the hype, use our card and earn rewards to be used for travel, or even get cash back.  But the question is are they worth it?

Well according to this article, the answer may be no. 

"Credit cards that give cash back prompt consumers to spend more and accrue more debt, according to researchers at the Federal Reserve Bank of Chicago."

Turns out that the biggest reward here is for the issuing banks and not the consumer.  Unfortunately, we seem to just rack up more debt, and giving the banks more profits.

 

About Anthony Candella

Anthony is the founder and Directing Attorney of YourCreditAttorney.com and has been helping consumers just like you understand and improve your credit and financial situation since 2003.