<br><div><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - US economy masks credit crisis as debt hits millions"/><p class="gnt_ar_b_p">Everyone feels like they’re getting a freebie when they cash in those <a target="_blank" href="http://www.usatoday.com/money/blueprint/credit-cards/what-is-a-rewards-credit-card/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">credit card rewards</a>, but those “freebies” may actually be costing you more than you realize, a new study shows.</p><p class="gnt_ar_b_p">Two-thirds of Americans with credit card debt still try to maximize credit card rewards, which often come in the form of <a target="_blank" href="https://traveltips.usatoday.com/way-earn-airline-fly-miles-52877.html" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">miles</a>, points or cash back, <a target="_blank" href="https://www.bankrate.com/finance/credit-cards/chasing-rewards-in-debt/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">according to Bankrate</a>, a financial products comparison site. Bankrate surveyed 2,239 adults, of whom 1,740 were credit cardholders, between Jan. 24 and 26.</p><p class="gnt_ar_b_p">However, that’s a losing strategy for consumers, said Ted Rossman, Bankrate’s senior industry analyst.</p><p class="gnt_ar_b_p">"Chasing rewards while you’re in debt is a big mistake,” Rossman said. “If you have credit card debt — and no shame, a lot of people do — it’s so important to prioritize your interest rate.”</p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><h2 class="gnt_ar_b_mt">The math behind the rewards when you have credit card debt</h2><p class="gnt_ar_b_p">Credit card interest rates are at an <a target="_blank" href="http://www.usatoday.com/story/money/2023/11/01/credit-card-interest-rates-climb-to-33-percent/71391622007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">all-time high</a>, the Consumer Financial Protection Bureau. The average <a target="_blank" href="http://www.usatoday.com/money/blueprint/credit-cards/what-is-a-good-apr-for-a-credit-card/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">annual percentage rate (APR)</a> on credit cards — or the interest firms charge their borrowers — soared to a record 22.8% in 2023 from 12.9% in 2013, it said.</p><p class="gnt_ar_b_p"><strong>Learn more:</strong> <a target="_blank" rel="noopener" data-t-l=":body nav (cc)|e|auto spike click:7|${u}" class="gnt_ar_b_a" href="https://www.usatoday.com/money/blueprint/credit-cards/best-credit-cards/">Best credit cards of 2023</a></p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">Meanwhile, the typical rewards payout is in the 1 to 5% range, Rossman said. “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." You may end up paying more in interest than if you had just purchased an airline ticket, for example.</p><p class="gnt_ar_b_p">Besides, airline miles may not be...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/personalfinance/2024/03/15/credit-card-rewards-not-worth-extra-spending/72975335007/">Read more <span>➤</span></a> </div>
