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Hi there Salena Kulkarni here from Phoenix Wealth group, and in today’s short video, I just want to talk just very briefly about the credit cards that offer frequent flyer points and the dangers of using them.
So I’ve been talking with a number of clients, and preparing some strategies for them over the last couple of weeks and the conversation has touched on a number of times the idea of credit cards and the frequent flyer points that attach to them and why they’re so appealing to people, one of the things that I would say is that you do need to be very mindful of the fact that when you think about the number of dollars that you need to spend in order to generate a $200 airfare it’s quite significant, now if you need a credit card for business or work purposes anyway, and the frequent flyer points are really just a bonus then by all means, also if you are really strong with your financial discipline and you don’t perceive there to be much risk in terms of repayment and so forth then again maybe those sorts of frequent flyer
points are just a bonus, for the majority of people though, the reality is that the temptation around using credit cards and the ease of credit cards makes it a very dangerous kind of tool.
Now debt, like anything else, can either be the most powerful tool or a complete noose around your neck and I have many clients who initially come to me who earn significant family household incomes and struggle between pays and survive on credit cards and the reason, is they’ve got themselves into a cycle of relying on their credit card and they find it hard to break what I would encourage you to do, is think twice before taking on a credit card purely because it’s going to give you frequent flyer points and really make decisions around using debt dependent on how disciplined you are with your money management.
If you would like any support whatsoever in maybe even understanding how to simplify and boom bring some ease into your money management then please get in touch with me at the link below and look forward to connecting with you in the future.
(+61) 2 6100 3688
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PO Box 6049 O'Connor ACT 2602
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