When Debt Pays You Back: Credit Cards That Put Money in Your Pocket

Consumer debt is on rise. Sometimes, it seems that using a credit card is the only option and there's a myriad of reasons: you're ordering online; you're low on money but have to buy groceries; you pay bills automatically.

For the first time ever, in 2006, North American recorded debt higher than their incomes. Why? A lot of this is owing to low incomes and high cost living. Most of this negative debt is taken up by the middle classes because wages have plateaued while the cost of living has risen. When money runs out, what else can we do but borrow?

What if using your credit card as you normally would could actually earn you rewards, therefore saving you money on other products and services? Then maybe we could cut our spending in some areas, freeing up more of our income for debt reduction and essentials, right!

There's a number of ways that credit cards give back to their customers:

• Money-back incentives
• Air and travel miles
• Gift certificates
• Investment dollars
• Goods and services points earning

The big five banks in Canada all have many different forms of these offers.

The Royal Bank offers RBC Rewards points for redemption on travel, goods, gift certificates and RBC Registered Rewards. There's also partnership programs with Starbucks, Esso, British Airways and Cathay Pacific.

TD Canada Trust has up to 1% cash back on purchases, travel rewards and 3% in GM earnings towards the purchase of a GM vehicle.

Scotiabank offers travel benefits, an entertainment reward program, up to 1% money back on purchases, and even an accelerated money back program for students.

Bank of Montreal has an interactive card selector online, allowing you to choose from rewards of: various levels of AirMiles earnings and up to 1% cash back on applicable purchases.

CIBC also offers travel rewards and benefits and cash back programs, in addition to their partnership program with Shoppers Drugs Mart - allowing you to earn 5 Shoppers Optimum Points for every dollar spent.

As you can see, this is only a sample of the consumer benefits of using credit. So, what's in your wallet?