I had planned to use our IRS incentive money to pay down a credit card, but our local grocery store will give us a 10% bonus if we cash in our check for store gift cards.

So, if we receive a $1000 check, we could make a profit of $100! I would plan to put the money that normally goes to our monthly food budget toward our credit card.

Am I thinking right? Does it sound like a win/win situation to you?

Marlene

Sounds great to me as long as you follow through

I would not want to do it. I grocery shop at too many stores and I would not want to put my entire refund to it. Plus we are getting direct deposit. How would that work???

If it will work for you that it great!!

__________________
~Happiness is a large family~

Well you have to be aware and know that if you do not use these gift cards they start to lose the value on the card. Also need to look at what % you are paying on your credit card. If it is more that the 10% the store is giving you than NO it is not a good idea.

Also- I tend to spend more when I have a gift card because I think I need to use it up or I have already spend the $ to get the card so I can buy extra things- so you need to be a good spender if you go this way.

LAstly, I did see a show on TV where they talked about stores giving incentives because they want that $- so just be aware and check for loop holes.

Good luck!

It also depends on the interest rate on your card - even at a low rate that interest can compound to over $100 if you don't have the means to pay it off otherwise.

I agree and would definitely check the interest rate you are paying on that credit card....most are way over that 10% so it would make sense to pay that down.

I read this article the other day.... Say no to tax-rebate gift cards - MSN Money

add on but it isn't contingent upon spending all of your refund(the print doesn't even say that you have to show them anything saying it is from the refund). What it says on thier circular here is that if you buy $300, $600, or $1,200 worth ofr gift cards you get a 10% add on. What I intend to do is buy a $300 gift card and get the $30 add on. Since I budget $550 a month for food. I'll still have $250 of my budget for food at other stores for loss leaders and I will have the additional $30. I wouldn't do the total tax refund though(I wouldn't go over what I budget for food in a month). I agree with the ladies that are saying look carefully at what you are paying out on the credit card.

I am seeing it as Win Win Too.


I Am Thinking if You Get 1000.00 and Make 1100. And then Pay Your CC $1000. - You ARE making 100.00



No matter what your CC Interest rate is - You Are still only Paying them 1000.00 - So It is still a deal if you are getting an extra 100.00 for Groceries.

It makes sense to me.

It DOES matter what the interest rate is on the card is if you are going to pay that $1000 down over time and not right away If your food budget is $500 a month, it takes two months to pay down the cc. You have had interest charges on it.