Posted by Maneesh Sethi :: January 8, 2008 @ 6:57 am

Have you ever been deep in debt? Debt can be taxing and unhealthy, but for many Americans it is a way of life. If you're at this site, you probably are interested in making sure that you don't have any bad debt.

Getting out of debt is difficult. Still, even once you are out of debt, protecting yourself from falling back into old habits isn't easy. If you are recently out of debt, you are especially at risk for falling back in, so it is important to be careful and not backslide.

So what can you do?

1) Look back at your previous failures and see what went wrong
Most people go into debt for a specific reason. For example, you might have spent too much money using your credit cards, or you might have really loved to spend money while going out with friends. Regardless of the reason, look at your past failures. These are the things that are most likely to get you into trouble. If you used to spend a lot with your credit card, be careful to make purchases only when you have enough money to afford them. If you have a big expense you need to cover, find a smart alternative to credit cards such as a P2P loan on Lending Club.

2) Continue setting goals
You achieved your first goal: get out of debt! Now you need to make more. Why? Because without goals, you have no idea what you really want. Setting goals makes achieving your dreams more possible. Do you want to set up an emergency fund? Do you want to start investing? Write down a list of goals and actionable steps to achieve them.

3) Check your progress
Set a date every week or month to see how well you are doing towards achieving your goals. Have you slipped at all? Make sure you know exactly what is happening with your expenses.

By following these steps, you can prevent yourself from getting back into debt. We at Lending Club want you to live a debt-free life!