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Why chasing credit card rewards may not be worth it

'It's not free if you're paying 20% interest, month after month after month,' Bankrate analyst Ted Rossman says
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WEST PALM BEACH, Fla. — More credit card holders are showing interest in gaining rewards from the cards even as interest rates remain high, according to a study from Bankrate.com.

The study shows 72% of credit card holders admitting to pursuing rewards like cash back and miles, with Gen Z and Millennials leading the way.

Why chasing credit card rewards may not be worth it

"It's not free if you're paying 20% interest, month after month after month," Ted Rossman, a senior analyst at Bankrate.com, said.

Rossman said credit card holders who pay off their balances every month are getting the full advantage of the rewards, but 44% who carry balances month to month are not.

"Those with debt need to prioritize their interest rate and their debt payoff, rather than get too enamored with cash back and airline miles," Rossman said.

Also, 54% of credit card holders told Bankrate they are now finding it harder to pay off their debt.

"The best thing you can do if you have credit card debt is to sign up for a zero percent balance transfer credit card. Don't worry about rewards for now," Rossman said. "A lot of the best balance transfer cards don't offer rewards, but they do offer, in some cases, two years interest-free."