Have you been holding on to a particular credit card because of the rewards points that you earn when you use it? Do you feel that you can simply stack up those points by making your regular purchases with the credit card and then just immediately paying it off? That may be the case, but financial guru Dave Ramsey is saying to get rid of those credit cards anyway.
The points systems are designed for the consumer to fail. The point is to reward the person who overspends, not the person who routinely pays off their card in full every month. As such, these reward points systems are nothing more than yet another way for the credit card companies to make a little more money and take you for a ride while doing it.
It is so easy to convince people that they just need to collect those points to get great things such as trips to Hawaii or some other fancy desire that so many of us have. While it may be nice to dream about going to these places, there is no reason to use a credit card to try to make it to that point. Instead, it is a good idea to get rid of the cards and just start saving money towards that type of trip.
Keep in mind that Dave Ramsey has worked with more than a few people to help repair their finances. He knows of what he speaks. He says ditch the cards because they remain all too tempting to use for unnecessary purchases that kept you farther from your goals.