Add this to your end of year financial checklists: Evaluating your credit cards and spending habits. It potentially could save you thousands next year ...
The combo of the:
- Strongest economy in 12 years
- Lowest unemployment rates in 17 years
- Best wage growth in 10
...has produced low default rates on credit cards and rabid competition for business among credit card companies. All throughout the year, record benefits were being offered up and shelled out.
This has included multiple credit cards offering 2 percent cash back, record airline miles and previously unheard of 0 percent interest offers for extended periods of time.
Consider this:
- The average household is carrying $16,000 in credit card balances right now
- The average interest rate for credit cards is just over 15 percent
- That's $2,400 of interest expense down the drain if you don't pay it off
- Or you could opt not to pay any interest on that debt
- There are currently at least 10 offering introductory offers of 0 percent interest for 12 to 18 months
That's an easy way for the average household to literally save thousands.
If you aren't carrying any credit card balances, what do your rewards programs look like? Even the best rewards of two years ago offer 1-1.5 percent cash back. Don't stack up to the powerful offering of today - like the aforementioned 2 percent cash back offers.
If you charge what you can and take advantage of rewards you can easily obtain hundreds of dollars in additional cash back for your existing habits. Add in the tax cuts which will save the average Floridian $1,780 next year and you're already set for a huge bump to your bottom line without even accounting for any raises or bonuses.