You’d think that my tirade against the idiocy of using credit cards would indicate that I live a plastic-free life, wouldn’t you? Nope. I confess, I’m a rewards card user.
I’ve seriously considered getting rid of the credit card in favor of a debit card, but each time I look at the rewards benefits, it seems like that itty bit of devil’s plastic is worth keeping. Let me show you my logic, and you can tell me if I’m bonkers and need a dose of my own medicine, ok?
- I earn 1 airline mile per $1 spent.
- For 15k miles I can fly round trip to visit family.
- If I spend $15,000 on my credit card, I earn a ticket worth $500.
- I also spend $70/year in annual fees, and receive a companion ticket that is worth $400.
- In summary, I receive $900 in benefits by putting $15,000 on my credit card.
Rewards Card vs Debit Card
Maybe I ought to switch to a debit card. Is it only worth ditching credit cards if I’m going to be using a cash system?
I’ve tried utilizing a cash wallet in the past. After leaving the wallet (containing several hundred dollars) in multiple stores, we determined that my mommy brain and the cash envelope system don’t mix.
I’d consider transitioning to a debit card vs. my current credit card, but that would be pointless if I lose my credit card rewards without an associated decrease in spending (as I’d expect to achieve with cash).