Chasing credit card rewards when you're in debt is surprisingly common. Two-thirds of Americans in debt try to maximize their credit card rewards, according to a new study by Bankrate. It's tempting to rack up miles or points to earn a vacation or cash back, but there's no way to win at that game if you're in debt.
"Chasing rewards while you’re in debt is a big mistake, says Ted Rossman, senior industry analyst at Bankrate. "The average credit card rate is a record-high 20.75%. The typical rewards payout is in the 1 to 5% range. It doesn’t make sense to pay 20% or more in interest just to earn 1, 2 or even 5% in cash back or airline miles."
