Do Reward Credit Cards Encourage Extra Spending? Impulse Buying can Cause Financial Difficulties and Personal Debt
Reward credit cards have grown in popularity because they offer consumers the opportunity to get something for free, much like short term cash loans UK. Buying £100 worth of groceries with a cash back credit card earns the customer a £1; it previously earned them nothing. However, consumers often over-estimate the value of these incentives and are drawn into impulse buying which can lead to financial difficulties and personal debt.