Over the weekend, I spoke with WTOP in Washington about new credit card rewards programs that give customers incentives to pay off their debt. Discover's Motiva card, for example, gives back one month's worth of interest after six consecutive on-time payments, while the new Citi Forward card lowers interest rates for customers if they pay on time and stay under their credit limit. T.D. Bank's Simple Flexible card sets interest rates based on how much debt customers pay off.
While the cards could provide encouragement to customers trying to improve their credit score, anyone carrying a large amount of debt should be careful to use a card with the lowest interest rate possible, regardless of any rewards program attached.