More Americans are chasing credit card rewards, study finds

, which is why Ted Rossman with Bankrate said it’s a mistake to chase credit card rewards when carrying over debt month to month.

“The typical rewards payment is 1 or 2% on most purchases, maybe up to about 5 or 6% in cashback or airline miles,” Rossman noted. “If you really know what you’re doing and you’re maximizing the right kind of purchases with the right kinds of cards, but the point is interest far out ways rewards, the only time rewards are worth it are when you pay your bills in full and avoid interest.”

Rossman said 56% of cardholders can do that and rewards can be impactful, but not if it costs 20% or more for the privilege.“People get into credit card debt for practical reasons. I don’t want to shame anyone with credit card debt, but if you have credit card debt, put that interest rate first,” Rossman suggested. “Maybe get a 0% balance transfer card, even if it doesn’t have rewards, your reward is avoiding interest in that case.

He said to also consider paying with cash or debit while paying down debt. It’s best to avoid digging the hole any deeper while getting out of debt.

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