So You're Out of Debt…Now What?

Congratulations! You've succeeded in paying down your debt, and are ready to begin a new life with financial freedom, and fiscal responsibility. Unfortunately, your journey has just begun. For some, debt can be a revolving door, and it is tough to stick to your new spending habits, once you've managed to put out the fire. Financial expert Jean Chatzky gives us some tips to guarantee financial success for life.

Keep on keepin' on. Don't let up on the great habits you've formed while paying down your debt. Continue to track spending, taking note of any dangerous patterns that you see creeping back in. Be accountable for every purchase.

Automate your savings by having money directly deposited into savings accounts, and 401Ks. By saving automatically, you'll find that you don't even miss the money.

Avoid temptation. If shopping is your weakness, limit the time you spend at the mall. If you are tempted to stop at the drive-through window rather than cooking dinner, keep your purse in the trunk. Forcing yourself to get out of the car to access your money, gives you time to rethink the purchase.

Simplify! Use computer based budgeting programs rather than spending hours balancing your check book. Keep it simple and do what works for you.

Build a safety net. Be prepared for emergencies, and the occasional overspending. This way, one car repair or trip to the doctor's office doesn't completely undo all your hard work. Additionally, when you do give in to temptation, (and you WILL give in to temptation), if you have “planned to fail,” you won't succumb to guilt, and can quickly correct and get back on track.

Unfortunately, eliminating debt is not a one-time quick fix. It is a life long process requiring real dedication and discipline. For those who can change their habits, peace, and financial prosperity are the reward.