This time of year shoppers are known to pull out the credit cards faster than you can say happy holidays.
Perhaps the only comfort following that January bill may be knowing you're earning points towards your next vacation or flat screen TV.
It's a game for some.
Finance professor Tom Maynard with Converse College has mastered the art of racking up the most rewards. He's warning you credit card companies don't make it easy.
For example, a Chase card offer gives 5 percent cash back. It doesn't kick in automatically. You have to sign up for it online.
"I don't like it because it's just one more thing to remember," Maynard says.
And get this, the rules change every quarter. This month, you may get extra points on groceries and next month on gas. Each time you have to activate the savings.
Then there's the point rules:
Cashing in could cost you if you don't optimize what you have.
Check for thresholds that boost your rewards each time you reach a certain number of points.
Find out if and when your points expire.
Research shows people do spend more on cards that offer rewards, but don't be fooled. More points isn't always better, especially if the card charges an annual fee.
Look at it this way. If you pay a yearly fee of $95, you have to spend $95,000 to make up the difference.
Also, research the rewards card that works best for you. Maynard found a number of websites he recommends that compare them. He says, personally, he always opts for cash back over miles.
"If you've got all these blackout dates and you can't ever get it converted. I would argue you're still better off converting your points to cash and then shopping for the best fares," he adds.
Above all, he says pay off your card in full every month. It makes no sense to rack up rewards when you're only losing out in high interest rates.
Put as much on that card as possible, including utilities, sewer bills and car and property taxes. Be sure to check with those companies and municipalities to see if they charge you a processing fee. It varies from county to county.
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