Earning points or miles on a credit card makes it even more fun to spend money. But the excitement of earning while you spend can catch up with you quickly.
The urge to spend in order to earn rewards especially increases when you consider sign-up bonuses. These introductory offers lure you with the promise of a certain number of points or miles (we’re talking in the 20,000–60,000 range) if you spend a certain amount of money within a specific—and short—time frame. If you don’t typically make enough charges on a card to hit that minimum spend, you’re pretty much signing up to go into debt in exchange for a free flight or hotel stay. Before swiping a rewards card, check your motivation and make sure your spending is in line with your budget.