Understanding why you fell into the deep chasm of debt in the first place is the first step in resolving your issues with debt and building wealth for the future. Know that getting out from under the stigma of being in overwhelming debt can take years.

During the years of clawing your way out of the stigma of debt, it can be tempting to get back into debt with offers of credit cards and mismanaging your money – once again. Getting in debt again too soon can spiral you into another path of stress and debt that you’re struggling to pay.

You should examine your relationship with debt and begin to analyze why you got into the predicament in the first place. You can begin to manage your debts effectively as you create a budget and follow it to the penny, diagnosing your spending habits along the way.

Credit cards are the main culprit of getting into more debt than you can handle. You can purchase more with credit cards without having to spend the money you have on hand. It feels like having free money.

So during your life after debt, you should only spend with money you have on hand. Purchasing all those good deals on a credit card means you’re actually paying more money than the items originally cost because of the interest rates tacked onto the cost of your purchases for the privilege.

If you do use credit cards after you free yourself from overwhelming debt, make sure you pay them off in full each month to avoid excessive interest charges and to build good credit history.

Prepaid credit cards are good alternatives to other credit cards. You get a certain amount of credit according to the amount you put on it and make purchases that are deducted from that balance.

You can add more money to the card as you pay it down, making it work much like a phone card. Debit cards are also popular for those who want a documented account of their purchases and to help them from spending excessively again. Most banks offer debit cards issued by MasterCard or Visa.

You’ll need to religiously track your spending if you hope to avoid getting back in debt and keep to a budget that is carefully planned. After you track spending for approximately a month, you’ll have a pretty good idea about your expenses and where you can cut back.

Try to create a mindset for building wealth and making sure you’ve saved enough to meet unexpected expenses or loss of income. Besides saving money, research how you can invest your hard-earned dollars to make more money for you.