Credit Card Debt Management

Planning a trip this summer? Do you enjoy saving money? Choosing the right credit card could be the first and most important step to achieving your dream vacation and keeping it within budget.

As a recent post on the by Credit Card blog points out, credit card companies are currently in the midst of an intense bidding war, of sorts, for your money. In other words, you — the consumer — are in the catbird seat, and the rewards are better than ever.

If you don’t already have a rewards card, you could rack up tons of points instantly just by getting one and making one purchase with it. Of course, there’s the obvious cash-back rewards, air miles rewards, gas discounts and gas rewards, restaurant rewards for the foodies among us, travel accident insurance, car rental insurance — the list is practically endless.

But what you may not know is that credit cards can also get you luxurious hotel stays. You can get points equaling 2 to 4 nights with your first purchase with certain co-branded cards like Citi Hilton HHonors Visa Signature. Yes, that’s spelled “HHonors,” before you go whipping out your red pen.

Families with their eyes on the Magic Kingdom can use Chase’s Disney Rewards Visa to help them get there.

And let’s not forget other intriguing rewards and benefits that don’t receive as much attention: VIP airport lounge access; emergency cash disbursement; concierge service; free companion airline ticket (2-for-1) during airline credit cards’ bonus periods; regional discounts and sporting event discounts/VIP access.

Now, for your responsibility reminder (in honor of Mother’s Day) — make sure you can afford what you’re buying before you get a credit card and start racking up purchases. The best strategy is to make everyday purchases with your credit card, like gas and food, then pay off the balance at month’s end. The rewards stack up as a side benefit, but don’t become motivation to spend more than you are financially able. Otherwise, your credit card balance (and resulting monthly payments) will get so high that you may get a luxurious 2-night hotel stay, but you’ll be eating a Big Mac!