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Top 5 Credit Cards to Help You Reduce Your Current Liabilities This Year

February 25, 2025 By Stephen Kanaval Leave a Comment

Credit cards
Image Source: Unsplash

Credit cards often get a bad rap. And, some of it can be for good reason. If you are using a credit card to overspend, then you are just plain using it wrong. In all honesty, strategic credit card usage can significantly impact your journey toward debt reduction. The right card might serve as a powerful tool for consolidating existing debts, securing favorable interest rates, and ultimately decreasing your financial burdens.

1. The Citi Diamond Preferred Card

Citi credit card
Image Source: Citicards

The Citi Diamond Preferred Card stands as a remarkable option for consumers struggling with high-interest debt across multiple accounts. This card offers an industry-leading 21-month 0% APR period on balance transfers, providing nearly two years of interest-free payments toward your principal balance. The extended promotional timeframe significantly exceeds what most competitors provide, allowing you sufficient time to make meaningful progress on debt reduction. Despite its $0 annual fee structure, applicants should note the 5% balance transfer fee, which might impact initial savings calculations.

2. Discover it Cash Back

Discover
Image Source: Discover

The Discover it Cash Back card transforms everyday spending into a powerful debt reduction mechanism without requiring changes to your routine purchases. The card’s standout feature includes automatic dollar-for-dollar matching of all cash back earned during your first year, effectively doubling your rewards when applied toward existing balances. With rotating 5% cash back categories each quarter (grocery stores, gas stations, restaurants) and unlimited 1% on all other transactions, your regular expenses continuously generate funds for liability reduction. Plus, Discover’s unique “Paydown Planner” feature analyzes your spending patterns and recommends optimized payment strategies tailored to your financial situation.

3. Wells Fargo Reflect Card

Wells Fargo
Image Source: Wells Fargo

The Wells Fargo Reflect Card delivers exceptional value through its combination of long-term stability and forgiveness features designed specifically for debt consolidation purposes. This card provides a 0% introductory APR for 18 months on both purchases and balance transfers, with a unique extension feature that adds three additional interest-free months when you make on-time minimum payments during the promotional period. Beyond the introductory period, the card maintains one of the industry’s lowest ongoing APR ranges, making it suitable for those unable to completely eliminate balances during the promotional window.

4. U.S. Bank Visa Platinum Card

US Bank Plat
Image Source: US Bank

This one may only work for you if your credit is sparkling. The U.S. Bank Visa Platinum Card specifically caters to consumers with excellent credit who need substantial breathing room for managing large existing debts. The card features one of banking’s longest 0% APR introductory offers at 20 billing cycles for both balance transfers and new purchases, providing nearly two years of interest-free repayment opportunities. Unlike many competitors, this card maintains a relatively low 3% balance transfer fee, potentially saving hundreds of dollars when consolidating significant amounts from high-interest accounts.

5. Discover it Secured Credit Card

Discover 2
Image Source: Discover

Discover pops up twice on this list, and for good reason. The company has some of the most useful cards in the industry. The Discover it Secured Credit Card creates a viable path for borrowers with damaged credit to simultaneously rebuild their scores while addressing existing liabilities. Unlike most secured cards, this option offers genuine cash back rewards—2% at gas stations and restaurants (up to $1,000 in combined purchases quarterly) and unlimited 1% on all other purchases—allowing budget-conscious consumers to accelerate debt reduction efforts. The refundable security deposit (starting at $200) establishes your credit line while Discover’s automatic account reviews begin after just seven months, potentially transitioning responsible users to an unsecured card with higher limits.

The Right Card Is Only Part of a Winning Strategy

card swipe
Image Source: Unsplash

Selecting the right credit card represents just one component of a comprehensive debt reduction strategy, but its impact can be substantial when utilized correctly. Each option presented offers unique advantages depending on your specific financial situation, credit profile, and debt management goals. Before applying, carefully calculate potential savings through balance transfer fees, promotional periods, and ongoing interest rates as they apply to your current liabilities. Consider reaching out to a financial advisor for personalized guidance on incorporating these tools into your broader financial plan.

Stephen Kanaval
Stephen Kanaval

Stephen began his career as a Research Assistant at a reputable middle-market private equity firm, where he honed his skills in market research, financial analysis, and identifying investment opportunities. He then transitioned to full-time financial writing focusing on small-cap biotech innovation and digital payment solutions. Today, Stephen is a value-based retail investor and novice baseball statistician.

Filed Under: credit card points, credit cards, Credit Score, Uncategorized Tagged With: Credit cards for reducing debt, debt free, reducing debt

10 Simple Habits That Can Help You Become Debt Free in One Year

January 6, 2025 By Teri Monroe Leave a Comment

Debt free in a year
Image Source: Pexels

Is it realistic to pay off your debt in just a year? Absolutely, but it requires planning and consistency to achieve your goal of being debt-free. Here we’ll give you the tools and tips to eliminate your debt in a year.

1. Read for Financial Success

The first habit to adopt to help you on your way to being debt-free is to increase your financial literacy. There are so many helpful books to help you on your journey. One example is Dave Ramsay’s Total Money Makeover, which can help you change your money habits. By focusing on brushing up on your financial literacy, you’ll learn about strategies like the Avalanche or Snowball method and the 50/30/20 rule. If you surround yourself with the tools and knowledge you need to pay off your debt in one year, you’re more likely to achieve success.

2. Know What You Owe

Next, you have to be aware of how much debt you’re in. It may seem obvious, but creating a spreadsheet or using a budgeting app is essential if you plan on aggressively paying back your debt. You may be stuck in the cycle of paying minimum payments on credit cards that you don’t have a good idea of the big picture. Take a step back to assess where you’re at so that you can come up with a realistic game plan.

3. Make an Easy Debt Payoff Plan

Sticking to the ambitious goal of paying off your debt in one year is completely achievable, but you have to make your payoff strategy realistic. At the same time, you’ll also have to pay more than just your minimums. Finding the right schedule for debt repayment can make the process easier. You can choose to make payments every paycheck for an easy schedule. Maybe you’re more comfortable with weekly payments. It’s all about holding yourself accountable and creating a comfortable schedule.

4. Change Your Shopping Habits

You’ll be surprised how much you can save by adjusting how you spend money. Some families benefit from placing a spending limit each week for groceries and then shopping sales to reach that goal. There are so many grocery store hacks to help you save money. With a few adjustments, you can save money on things you normally buy without feeling like you’re cutting back or missing out.

5. Lower Your Utility Bills

Lower your utility bills to become debt free
Image Source: Pexels

Another simple way to create additional money to pay off your debt is to try and lower your utility bills. In the winter, can you lower your heat by a few degrees? Can you unplug appliances when they aren’t in use and turn off lights when you leave a room? Even limiting how many times a week you run your washer and dryer can reduce your bill. These small changes can add up to big savings over the course of a year.

6. Celebrate Your Wins

Make sure that you adopt the habit of celebrating your wins when you make progress toward paying off your debt. If you’re a visual person, a debt payoff meter or a jar full of coins that you fill in each time you make a payment could give you a rush of dopamine. You may even start to enjoy reaching your financial goals more than you enjoy spending money.

7. Increase Your Income

Increase Your Income
Image Source: Pexels

Are there small ways to increase your income to help you become debt-free in a year? This doesn’t mean that you need to find another part-time job though. If you have any hobbies like crocheting or baking can you turn those into side hustles in your spare time? Even picking up small tasks like dog walking, delivering for Doordash, or washing other people’s laundry can help you add additional income.

8. Sell Off Things You Already Own

Not only can selling off things you own help you become debt free, but it can also help you declutter and live more simply. Facebook marketplace is a great place to list items you’re no longer using like household appliances or furniture. Even just a few hundred extra dollars can help you become debt-free in a year.

9. Continue to Enjoy Life while You Pay Back Debt

You can still enjoy the things you love while becoming debt-free. You just have to change the way you enjoy those things or the frequency to stay on track with your goals. If you really enjoy trying new food, could you learn new recipes to try at home instead of eating out often? Maybe you love a good latte in the morning. There are so many recipes for Starbucks dupe recipes that you can make at home. Also, you can indulge in a meal out or a morning coffee say once a week if it fits into your budget and debt repayment plan. But, you may have to look at your lifestyle if you’re spending hundreds of dollars every time you leave the house.

10. Say No to Additional Debt

Saying no to additional debt
Image Source: Pexels

When you feel like you’ve got a better handle on your finances, you may be tempted to take on additional debt. One trap to avoid is Buy Now, Pay Later debt. It may feel like it’s better than a credit card purchase, but this kind of spending adds up quickly and can get in the way of your goal of being debt free.

Achieving Your Goal of Becoming Debt Free

These simple habits can help you achieve financial freedom and eliminate your debt in just a year. If you believe in yourself and stick to your goal you’re sure to find success. Are you in the process of becoming debt-free? What strategies are you using to pay off your debt?

Read More

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Teri Monroe Headshot
Teri Monroe

Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.

Filed Under: debt free Tagged With: creating a debt plan, credit card debt, debt free, debt free in a year

How to Live Without Money

November 16, 2020 By MelissaB 1 Comment

Live without Money

Have you ever considered what life would be like if you quit your job?  How would you provide for yourself and your needs?  Could you live without money?  Is that even possible in our modern era?

It is possible to live without money, but you would have to put aside some of the creature comforts your used to.  You would also likely work just as hard as you do now, when earning a wage.

How to Live Without Money

To successfully live without money, you need to find ways to find shelter and food, at the minimum.

Where to Live for Free

Live Without Money
Photo by Christine Roy on Unsplash

Sure, you could couch surf if your friends are agreeable, but there are other ways to find shelter without paying cash.

Take Care of An Elderly Person

Some elderly people would like to remain in their own homes, but as they age, they need more assistance.  They hire live-in care givers who take care of them in return for free room and board.  If you have the right skills, this can be an excellent way to find shelter for free.

Manage an Apartment Building

Another option, if you’re handy, is to take care of the maintenance in an apartment building in return for a free apartment.  This option is more suitable if you live in a large city.

How to Eat for Free

Eating for free can be trickier than finding a place to live for free.

Food Pantry

If you’re trying to survive with no money because you’re in a difficult financial place, you can visit a local food pantry.  They will likely give you enough food for a week if you’re careful.

Soup Kitchen

Likewise, you can visit a local soup kitchen and get a free meal.  If you live in a bigger city, you may be able to go to a different soup kitchen every day to get a hot meal.  Again, this is an excellent choice if you’re financially struggling.

Volunteer at a CSA

If you have a farm near you that offers CSA subscriptions, you may be able to barter for food.  Some CSAs (community supported agriculture) will trade five or ten hours of work a week for a CSA box.  This will likely not provide all of your nutritional needs but will supply your fruits and vegetables for the week.

Dumpster Dive

Lastly, some people dumpster dive for food.  While this may sound disgusting and unsanitary, not to mention dangerous, there is an entire community dedicated to avoiding food waste by dumpster diving.  You’ll want to take adequate precautions, but you can get quite a large amount of food by rescuing restaurant and grocery store cast offs.

Final Thoughts

Trying to live without money is challenging.  I’ve given suggestions for getting a place to stay and food for free, but what about the other things needed in our current society?  How would you pay for a car and gas?  Clothing?  Some people simple forego a vehicle and only use the clothes they have.  If you determined to live without money, you can.  Other people have, at least for a few months or years.

Read More

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Can You Earn a Stable Income By Only Freelancing

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: Frugality, Saving Tagged With: debt free, financial freedom, frugal

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