Purchase Acceleration

What’s “purchase acceleration,” you wonder? It’s the common practice among credit-card holders of spending more as they get closer to a reward milestone. As described in a _U.S. News & World Report_ article, some credit-card companies encourage purchase acceleration by alerting customers when they’re getting close to a “free” airline ticket or other reward. The article noted that people also tend to spend more after receiving a reward.
h3(matt). Matt’s View
p(matt). Do credit-card companies have us figured out, or what? In addition to encouraging people to overspend, the article went on to point out that many reward cards come with annual fees that easily negate the value of their rewards. And of course, paying interest by carrying a balance doesn’t help either.
p(matt). Here’s the rocket science for practicing safe charging: Use credit to buy only pre-planned _(budgeted!)_ items and pay the balance in full each month. For those who can stick to such guidelines, there are plenty of no-fee reward cards out there where the rewards really are free.

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