Why Americans have more credit card debt

But while these promotions are attractive, they can also encourage spending. Rather than get sucked into a promotion and spend unnecessarily, use a credit card only when you need something, and when you can afford to pay it off.

––Lack of financial knowledge: If you don't know how to manage credit cards responsibly, there's also a risk of making mistakes with your credit card, like charging up your accounts and carrying high balances from month to month. You might assume that as long as you make your minimum payment every month, you're on the right track. But maxing out a credit card can lower your credit score.

Because the amount you owe typically makes up 30 percent of your credit score, maintaining good credit also involves minimizing revolving debt. As a rule of thumb, credit card balances should never exceed 30 percent of your credit limit.

Credit cards are convenient and flexible, but they can also get you into trouble if not used responsibly. Credit cards might be the preferred payment method for some Americans, but it doesn't have to be your preferred method. So learn how to manage cards the right way, and get out of the habit of carrying high balances from month to month.

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