How to Make the Most of Card Offers Without Falling Into Debt

  • April 14, 2025
  • 3 minutes, 39 seconds

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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.

Why Card Offers Are Popular?

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.

Risks of Card Offers

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?

How to Utilise Card Offers Smartly Without Falling Into Debt?

A few steps of caution will help you reap the maximum benefits of cards:

Start with a Budget

Always begin with a monthly budget. If your income is ê 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. Letsgo Payit Card - Shop, send, and experience freedom.

Only Spend on What You Need

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.

Pay the Full Amount

Never carry a balance. Let’s say you spend ê 2,000 this month. If you only pay ê 500, you get charged interest on ê 1,500. That can cost you ê 45–50 per month. Paying the full bill avoids all interest charges, keeps your credit score healthy, and ensures rewards actually save you money.

Set a Monthly Card Spending Limit 

Instead of using your full credit limit, create your own ceiling. For example, if your monthly income is ê 7,000 and your essential expenses (groceries, utilities, fuel, etc.) come to ê 2,500, set a rule: only spend up to ê 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.’

Use Rewards

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.

Don’t Fall for These Common Traps

  • Spending to earn rewards: ê 500 in spending to get ê 10 cashback? Not a win unless the purchase was needed.
  • Ignoring annual fees: If a card charges ê 500 annually and you earn only ê 200 in rewards, you’re doomed.
  • Missing a payment: UAE banks charge late fees of around ê 230–300. That erases any benefits you earned that month.
  • Using multiple cards: Focus on 1 or 2 cards. More cards = more risk of missing payments and more to track.

Wrapping Up

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. 

FAQs

1. Is it safe to pay with a card online?

Yes, paying with a card online is generally safe if the website is secure and trusted.

2. Are debit cards free?

Most debit cards in the UAE are free with a bank account, but some may have annual fees.

3. Can I withdraw cash from PayIt?

Yes, PayIt does support direct cash withdrawals from ATMs.

4. What is a good credit score in the UAE?

A good credit score in the UAE is typically above 700.