Money saving credit card tip

Is it possible to spend money to save money?

For my husband and I the answer is yes. We use mainly one credit card from a national department store, which can be used anywhere, and buy all our groceries with it, pay for vacations and gas for the cars using it, and pay off the credit card balance in full each month.

The card has no annual fee, and strangely enough, a couple times a year the store / credit card company sends us a gift card to use at their store. The gift card costs us nothing, and we have the pleasure of going to the store and buying things at no expense to us.

We often use the cards, which are usually for $20 to $100 of merchandise, to get Christmas gifts for family and friends, at no cost to us. This is a good idea only if you pay off the balance in full each month; credit card interest rates can make a balance turn into a nightmarishly large amount owed. For us, this reward system works nicely.