How Credit Card Rewards Could Be Costing You More Than You Think
How Credit Card Rewards Could Be Costing You More Than You Think Who doesn’t love a free flight or cashback? But behind those shiny points and perks, credit card rewards may be silently costing Australians more than they realise in 2025. 1. Rewards Encourage Overspending You might spend extra just to hit a points target — buying things you wouldn’t otherwise. 2. High Interest Cancels Out Benefits Carrying a balance? That 20% interest quickly wipes out any points earned. 3. Annual Fees Add Up $200+ per year in fees can outweigh your flight upgrade. 4. Psychological Trap Rewards programs are designed to keep you spending. It’s behavioural economics — not luck. So, What Can You Do? Pay your card in full each month Track actual benefits vs costs Switch to low-rate cards if carrying debt Bottom Line: Rewards are great — but only if they don’t lead to long-term debt. Be intentional with your plastic.