Millions of Americans are now happily taking on credit card debt because their accounts will grant them points, cash back or airline miles for doing so, and half of those making summer travel plans will redeem those perks to make their vacations more affordable.
About 50 percent of all consumers planning to take a trip this summer will use their credit card points to finance at least part of it, up from 42 percent at this time last year, according to the latest Rewards Barometer from Capital One Financial, which tracks how borrowers are feeling about their rewards cards. The majority of those who plan to use their rewards points in this way – 58 percent – will do so to buy airline tickets, while another 42 percent will redeem their accumulated rewards for hotel stays, and 18 percent will use theirs for gasoline purchases.
However, many consumers who use rewards cards may not be aware that doing so can be costly, as these accounts typically have higher annual fees and interest rates than no-frills cards. This means users might be more likely to end up needing debt relief as a result.