Millions of consumers will likely turn to credit cards to cover at least some of their holiday shopping expenses once again this year, but what will it ultimately cost them?
There are a number of factors for borrowers to consider when thinking about how to most effectively use their credit cards for holiday shopping, according to a report from Investopedia. For example, the higher their interest rate, the less money they should probably spend, with regard to spending totals that exceed the borrower's ability to pay the entire balance down in one billing cycle.
It may also make sense for consumers to look at the credit cards in their wallets that offer the most rewards, the report said. This can help to cut down the overall cost of borrowing, particularly if the rewards they earn come in the form of cash back, rather than airline miles or points.
Experts recommend that keeping spending on credit cards to a minimum will help consumers to stay in a strong position to reduce debt going forward.