Fix Your Finances 3.0: overspending with rewards credit cards

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INDIANAPOLIS, Ind.-  Layaway is how shoppers used to buy things they couldn’t actually afford at their favorite stores.

It’s much easier to do this today, all thanks to store credit cards.

“Credit came along and they’re like take your stuff now and figure out how to pay for it later,” said Peter Dunn, a local financial expert.

Store credit cards usually come with coupons and deep discount offers.

Dunn believes it’s those offers for so-called steals and deals that can really get shoppers into trouble.

“They can create some major behavior issues,” said Dunn.

What about those rewards credit cards everyone loves to brag about making money off of?

“I usually get $200-$300 a year back in cash,” an Indianapolis man told Fox 59.

But at what cost?

“They spend more money than they normally would—because they’re trying to get points,” said Dunn.

This means that even if you’re winning the “points” game, you may still be losing money.

“Why do points cards exist? To get you to spend money!” said Dunn.