IN MALIBU, KCAL NEWS. >> WHAT A MESS OUT THERE. CREDIT CARDS CAN OFFER SOME REALLY GREAT PERKS LIKE CASHBACK OR FREE TRAVEL. >> WITH THE PURSUIT OF THOSE REWARDS BE SENDING YOU FURTHER INTO DEBT. >> IT IS HARD. YOU GET THESE OFFERS IN YOUR INBOX THAT THEY SPEND THIS AMOUNT OF MONEY AND YOU WILL GET THESE BONUS POINTS OR SIGN-UP SOMEONE ELSE AND YOU GET THESE BONUS POINTS.

WE OFTEN FIND WE ARE CHASING THOSE POINTS. ACCORDING TO A NEW STUDY BY BANK RATE, TWO THIRDS OF AMERICANS WITH CREDIT CARD DEBT MAKE AN EFFORT TO MAXIMIZE CREDIT CARD REWARDS. EXPERTS SAY THIS COULD BE A BIG MISTAKE. THAT IS BECAUSE CREDIT CARD REWARDS ARE ONLY WORTHWHILE IF YOU PAY OFF YOUR CREDIT CARD EVERY MONTH. THOSE CASHBACK OFFERS ARE BETWEEN TWO AND 5% WHICH IS WELL BELOW THE AVERAGE CREDIT CARD INTEREST RATE WHICH IS HOVERING AROUND 22%. >> THERE IS SOME PERSPECTIVE THERE. MAYBE WE'LL GET FREE AIRLINE MILES ARE A FREE HOTEL STAY BUT YOU'RE PROBABLY PAYING MORE INTEREST IN WHAT THAT REWARD IS WORTH. >> ABSOLUTELY. THE BETTER THE PERKS THE HIGHER THE INTEREST RATE.

THE BEST WAY TO USE ONE OF THESE CARDS IS DON'T PAY INTEREST. PAY IN FULL. YOU DON'T HAVE TO WORRY ABOUT THOSE MONTHLY CHARGES. IF YOU HAVE DEBT IT IS BETTER TO STICK TO CASH OR DEBIT WHILE YOU PAY DOWN YOUR CREDIT CARD DEBT OR SEEK THE LOWEST INTEREST RATE POSSIBLE. >> THOSE IN HIGHER INCOME BRACKETS ARE LIKELY TO MAKE AN EFFORT TO MAXIMIZE THEIR CREDIT CARD REWARDS. 68% MAKING LESS THAN 50 K. YOUNGER GROUPS ARE MORE LIKELY, 77% OF JONESY AND 77% OF MILLENNIAL'S CHASING THE REWARDS COMPARED TO 69% OF GEN XERS AND BABY BOOMERS. TAKING ADVANTAGE OF ZERO INTEREST CREDIT CARDS. ONLY THEN SHOULD YOU CONSIDER A REWARDS CREDIT CARD.

I RAN INTO THIS THE OTHER DAY, I WAS SIGNING UP FOR. [INAUDIBLE] PAYMENT AND THERE WAS A PERCENTAGE THEY WOULD CHARGE ME TO USE THAT VERSUS PAYING IN MY BANK ACCOUNT. IS THAT PERCENTAGE HIGHER THAN I WOULD GET IN MY REWARDS FOR MY TRAVEL CREDIT CARD. YOU NEED TO LOOK AT THAT AS WELL ESPECIALLY WHEN YOU HAVE THE APP AND YOU SEE THE CREDIT CARDS. I CAN GET A NIGHT IN HAWAII, BUT AT WHAT COST. >> I DO KNOW PEOPLE THAT WORK SO HARD TO NAVIGATE. >> YOU ALSO HAVE TO MAKE SURE YOU ARE NOT SPENDING MORE MONEY JUST TO GET THE PER JKSUS.T BECAUSE I >> B.