Is your card helping you build wealth, or are you just accumulating debt? Well, cards bring you tempting benefits — cashback, discounts, loyalty points, and travel perks. But misuse them, and those same benefits turn into debt traps with high interest and fees.
So, how can you enjoy all the perks without falling into financial stress? Let’s break it down.
The UAE is a high-spending market. As of 2024, the cards and payments market in the UAE reached a total value of $139.3 billion.
Why? Card offers provide instant rewards like cashback, air miles, and discounts. They appeal to lifestyle needs — travel, shopping, dining. Many users are drawn by zero-interest EMI options and sign-up bonuses. Banks use these offers to attract and retain high-spending customers.
The benefits of cards are great if used smartly. But they can also lure you into overspending, missed payments, and long-term debt. If you carry a balance, UAE credit cards typically charge 2%–4% per month, or up to 48% annually. That’s hefty.
Now imagine doing that while chasing a few cashback rewards. Do you find it worth it?
A few steps of caution will help you reap the maximum benefits of cards:
Always begin with a monthly budget. If your income is AED 15,000, allocate amounts for rent, groceries, transport, utilities, and savings. Now use your card only for these planned purchases.
The Letsgo Payit Card connects to the Payit wallet and gives you real-time expense tracking. Every time you spend, your wallet balance updates instantly. No guessing. No surprises.
Do you pay bills of Etisalat, Du, DEWA, or buy groceries at Carrefour, Lulu, or Talabat? Use your card there. These are predictable, necessary expenses. Avoid using cards for impulse buys or luxury treats.
Stick to your shopping list. Don’t let offers tempt you into unplanned purchases. If you wouldn’t buy it with cash, don’t buy it with your card either.
Never carry a balance. Let’s say you spend AED 2,000 this month. If you only pay AED 500, you get charged interest on AED 1,500. That can cost you AED 45–50 per month.
Paying the full bill avoids all interest charges, keeps your credit score healthy, and ensures rewards actually save you money.
Instead of using your full credit limit, create your own ceiling. For example, if your monthly income is AED 7,000 and your essential expenses (groceries, utilities, fuel, etc.) come to AED 2,500, set a rule: only spend up to AED 2,500 on your card.
It ensures your card is used only for planned, repayable expenses. Also, it keeps your credit utilization low. Fruitful to maintain a healthy credit score. Never treat your credit limit as ‘extra money.’
Card offers are only useful if you actually redeem them. Many cards offer cashback, discounts, or loyalty points, but these often expire within 12–24 months. Build a monthly habit of checking your rewards balance.
Letsgo Payit card gives you exciting rewards on groceries, traveling, luxury products, and more. Check them and utilize them to get up to 70% off on your purchases.
Maximizing card benefits means spending smart, and not excessively. Use your card only for essential purchases. Track spending. Pay in full. Small steps are all it’ll take to save you from the debt trap.
Yes, paying with a card online is generally safe if the website is secure and trusted.
Most debit cards in the UAE are free with a bank account, but some may have annual fees.
Yes, PayIt does support direct cash withdrawals from ATMs.
A good credit score in the UAE is typically above 700.