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Smart ways to splurge on national spending day

Ja'net Adams, author of Debt Sucks, and Nathan Grant, senior analyst at Credit Card Insider, break it down for us.

GREENSBORO, N.C. — Wanting a new pair of shoes, how about a new phone, or an air fryer? Well, today is the day to treat yourself because it's national splurge day! But don't go spending it all at once. There is a smart way to splurge.

Ja'net Adams, author of Debt Sucks, and Nathan Grant, senior analyst at Credit Card Insider, break it down for us.  

Instead of splurging with a credit card and simply building up more debt that you have to pay off biting you in the butt in the end, Grant said consider earning "splurging" rewards from using a credit card throughout the year and cashing in with the awards you earned.

That could include cashback cards, rewards cards across different categories, or maybe if you're doing online shopping more often lately, something like the Amazon Prime Rewards Card earns 5% back on all purchases at Amazon.com. Some people might want to splurge on travel, so a rewarding credit card that earns points or miles towards future travel might be the best choice.

With whichever reward option you might consider, what ends up happening is you build up the rewards that you can cash in later on, great for splurging however you prefer.

Adams said no matter what, have a plan to pay off credit debt. One of the hardest things for credit card users to overcome is the interest rate on their card. Depending on the card company, those interest rates could be pretty high. Remember, it is okay to own multiple credit cards as long as you are able to keep up with them. But after you pay them off, don't close the account because it could negatively affect your credit score.