Win Rewards for Paying Off Debt

Believe it or not, these cards help whittle your balance.

Debt-ridden American consumers are reforming their free-spending ways. We've paid off $160 billion of revolving debt (almost all credit-card debt) since September 2008. It may seem counterintuitive, but some credit cards actually encourage this new frugal behavior. The cards below are all good deals -- at least for the first year.

Discover's no-fee Motiva card rewards cardholders who carry a balance for making monthly payments on time. Do that six times in a row and you receive the next month's interest as a Pay-On-Time Bonus. You'll receive your interest rebate twice a year if you pay on time every month. And you earn up to a 1% cash-back bonus on purchases. Automatic payment reminders and free payments by phone help cardholders stay on schedule.

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Senior Reporter, Kiplinger's Personal Finance