Study finds Aussies overspend to earn reward points
- admin928749
- 1 day ago
- 2 min read
Free flights and cashback sound like a sweet deal, right? But it turns out chasing reward points might be costing Australians more than they realise.
New research from comparison site Finder has revealed that millions of Aussies are overspending or even falling into debt just to rack up rewards points from their credit cards.
In a survey of 452 credit card holders, two out of five admitted they struggled to hit the minimum spend needed to unlock bonus points. Even more worrying — 11% said they actually went into debt trying to qualify for those points, and almost one in six said they ended up spending more than they normally would just to meet the requirement.
Altogether, that adds up to about 2.6 million people who’ve either overpaid or landed in debt just to score rewards.
Finder’s rewards expert, Angus Kidman, says this shows how important it is to plan ahead before jumping into a rewards program.
“Rewards programs offer attractive perks,” he said, “but the moment you're spending more than you can afford or going into debt to get rewards points is the moment you stop saving money and start losing it.”
So what’s the takeaway?
Kidman says it’s crucial to know what the minimum spend is on any rewards credit card — and ask yourself if that lines up with your normal spending habits.
“If it doesn’t, consider waiting to apply until you’ve got a big purchase coming up — like a holiday or new furniture — that’ll help you meet the spend without stretching your budget,” he suggested.
Also, a pro tip: don’t waste your hard-earned points on low-value items like toasters or kettles. The return on those redemptions is usually not great — you’re better off saving for flights or upgrades where you get more bang for your buck.
Rewards can be great if used wisely — but they’re not worth it if they send you into the red.
Stay tuned with Aus News Lanka – the leading platform for news for Australians.
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