Americans are being driven further into debt chasing credit card rewards - as high-interest payments dwarf gains from points, air miles and cash back

Amerians are increasingly not paying off their credit cards each month - and they are making it worse by chasing rewards like air miles and cashback, a new report reveals.

Experts are warning them to prioritise clearing debts - since the cost of high interest fees on card balances far outweigh the value of any rewards.

Trying to earn cash back and airline miles while also paying high interest on credit card debt is like 'running on a backward-moving treadmill,' according to Bankrate, which carried out the survey.

It comes as total US credit card debt is larger than ever before.

Last week, the credit scoring company FICO reported that the average credit score in the US had fallen for the first time in more than a decade as high prices and interest rates strain consumers.

Some 44 percent of all card holders now carry debt, and of them 27 percent make 'every effort' and 40 percent make 'some effort' to maximize rewards

Ted Rossman, senior industry analyst at Bankrate, said those that carry debt should never be thinking about rewards, only on clearing the debt and making sure they are paying the least interest 

Some 44 percent of all card holders now carry debt, and of them 27 percent make 'every effort' and 40 percent make 'some effort' to maximize rewards, the survey found.

And among cardholders who pay in full, 76 percent make an effort to maximize their credit card rewards.

The median average credit card interest rate is more than 20 percent, making debt highly undesirable.

'If you have debt, you shouldn't put any effort into credit card rewards because the interest rates outweigh the benefits,' said Ted Rossman, senior industry analyst at Bankrate.

In the mean time, Rossman said those trying to clear their debts should just stick to using cash or a debit card.

'I don't think a lot of people are running the math,' he said. 'It's just not worth paying 20 percent interest for the 1, 2 or 3 percent that you can get back on some purchases.'

'Cash back is paid monthly and the 20 percent is over the course of the year, so its a little bit apple to oranges, but definitely not worth it,' he added.

Those with credit card debt should focus on paying it off and getting the lowest possible interest rates. They should not fall victim to clever credit card marketing schemes that emphasizes the value collecting points, said Rossman.

One way to control escalating debit is to transfer the balance to a new credit card that charges no interest for some introductory period, he said.

Younger Americans tended to place more effort in altering their spending to maximize rewards

One way to control escalating debit is to transfer the balance to a new credit card that charges no interest for some introductory period

Once the debts are cleared and the card user is consistently paying off their balance every month, they can then start thinking about rewards.

'There are two kinds of credit card holders - those that pay in full and those others that sadly get trapped in this expensive debt cycle,' said Rossman.

'As long as you can avoid debt and pay in full then [rewards] are all free money,' he said.

The study also found that younger Americans tended to make more of an effort altering their spending to maximize rewards.

By generation, 77 percent of Gen Z cardholders, 74 percent of millennials, 69 percent of Gen Xers and 69 percent of boomers said they make every or some effort to maximize their rewards. 

Rossman chalked that up to higher Gen Z and millennial interest in travel and dining, and potentially their desires to play and win the credit card game.

'They want champagne benefits on a beer budget,' he said. 

'To some people that's a fun game but a lot of people don't want to put that sort of work into their card strategy.'