Most people don’t end up in debt because they’re careless. It’s usually a combination of bad timing, rising expenses, and not having the right tools. But getting out – and staying out – takes intention.
Here are five smart, practical moves that can help you avoid high-interest traps, protect your future, and build real financial breathing room.
1. Use a balance transfer card to avoid paying interest until 2027
Credit card debt is financial quicksand -- no savings plan can outrun 20%+ interest. The good news? A 0% balance transfer card gives you room to finally catch up.
The Wells Fargo Reflect® Card (see rates and fees) offers 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers (then 17.74%, 24.24%, or 28.49% Variable APR applies). That’s nearly two full years to pay down debt without interest piling on.
Carrying a $4,000 balance at 22% APR costs about $1,000 a year in interest. With a 0% card, that money goes straight toward your debt payoff -- not your lender.
Just remember: This is a limited-time window. Avoid new charges, stick to a plan, and aim to be debt-free before the intro period ends.
Apply here and start fresh – interest-free until 2027.
2. Cut your interest and stretch your payments on your own terms
Not everyone qualifies for a top balance transfer card -- especially with a credit score below 670 or a mix of debts. And sometimes, 21 months just isn’t enough.
That’s where a personal loan comes in. You could lock in a lower rate than your credit cards, stretch payments over a few years, and save big on interest.
It’s also a simple way to streamline your debt. One fixed monthly payment, no surprises.
This tool matches you with loan options based on your credit profile, including lenders that offer fast, no-commitment prequalification. It only takes a few clicks to compare your options and see what you could qualify for — without impacting your credit score. See what you qualify for today.
3. Turn your idle savings into a money-making machine
Emergency expenses are one of the fastest ways to fall back into debt. A solid cash cushion is your best defense – and where you keep it matters more than you might think.
Most big banks still pay just 0.01% APY (annual percentage yield). That’s $1 a year on a $10,000 emergency fund.
Look at what $10,000 earns in different accounts:
- Traditional bank account (0.01% APY): $1 per year
- High-yield savings account (3.50% APY): $350 per year
- Difference: $349 per year
American Express® High Yield Savings Account (Member FDIC), offering an impressive 3.50%¹ APY (as of November 18, 2025) with no minimum deposit needed to start earning -- no gimmicks, no hoops, just a solid rate and FDIC protection.²
In just a few minutes, you can start earning hundreds more on money you already have. Open your American Express® High Yield Savings Account here.
4. Stop overpaying for car insurance
Auto insurance is one of those expenses most people set and forget. But over the past few years, rates have climbed fast – and quietly.
Loyalty doesn’t always pay. Insurers often reserve the best deals for new customers, while slowly raising premiums for long-time policyholders. You could be overpaying by $400–$1,000 per year without realizing it.
Take two minutes to compare quotes with our free tool:
- Enter your ZIP code
- Answer a few quick questions
- See if you’re overpaying and switch if you want to
Worst case? You stick with what you have.
Best case? You save hundreds with almost no effort. Either way, it’s worth a 2-minute check.
5. Ask for a raise (yes, seriously)
Cutting expenses is important, but the most powerful financial move you can make might be increasing your income.
Yes, we know this sounds obvious — but it’s amazing how many people never actually do it. And here’s the kicker: 70% of people who ask for a raise get one.
It’s not always easy. But advocating for your value can have a bigger long-term impact than any budgeting trick. A higher income helps you pay off debt faster, build savings quicker, and gives you more flexibility in every aspect of your finances.
The key is preparation:
- Know your market value
- Document your wins
- Practice the conversation
Debt freedom isn’t just about cutting back – it’s also about leveling up. You got this.
Bottom line
Staying out of debt isn’t a one-time decision. It’s a series of smart habits and proactive moves. Whether it’s transferring your balance, boosting your income, or simply shopping smarter, the best time to take control is now.
And if even one of these steps helps you save or earn a few hundred bucks this year? That’s progress worth celebrating.
The most important first step? Stop the bleeding with a 0% intro APR balance transfer card. Our top pick offers over a year of interest-free breathing room — giving you time to pay down your debt without racking up more.
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American Express HYSA disclosure
¹The Annual Percentage Yield (APY) as advertised is accurate as of November 18, 2025. Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened. Interest Rate and APY of a Certificate of Deposit account is fixed once the account is funded.
²There is no minimum balance required to open your Account, to avoid being charged a fee, or to obtain the Annual Percentage Yield (APY) disclosed to you.
³iOS and Android only. See app store listings for operating system info.
⁴For purposes of transferring funds to or from an external bank, business days are Monday through Friday, excluding federal holidays. Transfers can be initiated 24/7 via the website or phone, but any transfers initiated after 7:00 PM Eastern Time or on non-business days will begin processing on the next business day. Funds deposited into your account may be subject to holds. See the Funds Availability section of your Consumer Deposit Account Agreement and Savings Schedules for more information.
Wells Fargo is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends Target and Visa. The Motley Fool recommends InterContinental Hotels Group Plc. The Motley Fool has a disclosure policy.