Strategy: Using a credit card for rewards debit style!

Their is an never-ending debate on whether one should use cash or credit for monthly expenditures. There are good arguments for both sides and I recommend that you do what works for you. I have chosen rewards credit card (Delta Skymiles AMEX to be exact) since I love to travel.

The main argument against using a credit card for everyday purchases is that it affords you the ability to overspend since it does not come directly out of your bank account. Through some various reading online I have found a solution:

Pay off your credit card weekly!

This requires a little more manual work but you should be reviewing your accounts once a week anyway. By paying it weekly you have a little more cash flow control and you can still earn the rewards. It's as if you are turning your credit card into a debit card of sorts. You still earn the rewards and help to prevent overspending at the same time.

I really like the idea of this solution and plan to give it a try myself! The only catch I can see is that some credit card providers only allow you to make a certain number of payments within a given time period. The work around here is to set up your credit card on bill pay. Trust me the credit card companies will NOT refuse a payment!

The best method I can come up with is to pick a day, say Sunday, and log in and pay off the total balance at that time. You are forced to look at what you spend, pay for it only if you have the money now, earn your rewards, and avoid interest. Brilliant!