A recent survey shows that more than fifty percent of Americans with credit card debt are making one crucial mistake. (Fox Business)
Bankrate found that 68 percent of Americans with credit card debt are trying to maximize their credit card rewards, with 27 percent saying they make “every effort” and 41 percent who make “some effort.”
In fact, the generation most guilty of the practice is millennials. Of those with credit card debt, 78 percent try to maximize their rewards, according to the results of the survey, which were published Tuesday.
“This is a bad idea – if you carry credit card debt from month to month (and most cardholders do), you need to forget about rewards and prioritize your interest rate,” Bankrate.com credit card analyst Ted Rossman said.
“The current national average credit card rate is 17.82 percent. It doesn’t make sense to chase 1, 2 or 3 percent in cashback or airline miles if you’re paying roughly 18 percent in interest. Forget about rewards until you’re debt-free,” he added.
One easy way to improve debt is a balance-transfer card, although only 47 percent of credit card holders have one.