America is hooked on credit cards — and it's pretty clear why (JPM, TSYS)

Shutterstock/Adam Supawadee

Americans have racked up $1.01 trillion in revolving debt — primarily credit card debt — according to the Federal Reserve. That's the highest tally since the financial crisis in 2008. 

The credit card is now the preferred method of payment among Americans, edging out debit cards and cash, according to the 2016 US Payment Study by payment processing company Total Systems Services, or TSYS.

It's the first time credit cards claimed the top spot in the six years TSYS has been conducting the study, which surveys 1,000 consumers who hold at least one debt card and one credit card (you can read more about their methodology on page four of the study).

Why have credit cards grown more popular? The study offers some insights as to why: 

Forty percent of respondents from the TSYS study picked credit cards as their favorite form of payment, followed by debit cards (35%), and cash (11%). Credit cards have been gaining on debit cards for several years now.

Samantha Lee/Business Insider; TSYS

TSYS found that credit cards aren't universally loved, currying the most favor from older millennials.

Samantha Lee/Business Insider; TSYS

Credit card love also skewed toward high-income households. The more money a household earns, the more they prefer credit cards.

Samantha Lee/Business Insider; TSYS

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