It’s still not too late, however, to reset trajectory on your family’s finances, experts note.

1. Build a Budget If you haven’t already done so, create a realistic budget.

Approximately 85% of your income should be set aside for necessities like housing, food, health care and clothing, according to professionals at VISA USA.

This leaves 15% for entertainment—and something many consumers completely neglect: savings.

2. Distinguish “Needs” from “Wants” Make sure you have a clear understanding of what you need in life versus what you want in life.

You need to pay for antibiotics when doctor diagnoses a respiratory infection. You don’t need to buy latest movie released on DVD to aid in your recovery.

You need to pay rent or mortgage. You don’t need to buy lovely accent pillows that beckon to you from interior design boutique.

Always separate needs from wants—particularly if money is tight.

3. Monitor Your Spending To see what you really spend each month, keep a running log of all purchases—no matter how small—for a full month. This will give you a visual display of where your money goes after you deposit your paycheck.

You may find that $3 cup of coffee that starts each day adds up to $90 a month—a pocketbook pincher that may prompt you to buy a pound of coffee beans at local market and grind them yourself. That $90 blossoms into $1,080 in savings at end of a year.

4. Create an Emergency Fund Life is full of surprises—both positive and negative. If you happen to lose your job or suffer an illness that temporarily sidelines you, you will need cash reserves to support you during rough months.

“In most cases, consumers who find themselves dealing with a financial hardship are unprepared and have not saved for unexpected situations,” says Diane Giarratano, director of education for Novadebt, a U.S. financial management service agency, with multiple locations, that provides credit counseling, budgeting and financial education.

5. Educate Yourself When you attended high school or college, you studied history, mathematics, language and science, but there was probably no course in basic money management.

So, exactly what does it take to get—and stay—out of debt?

Here are 7 secrets that will help set you on right path.

1. Cut Back on Credit Cards Banks love to send offers for new credit cards to consumers, and mailboxes overflow with low-interest—even no-interest—“unbeatable deals.”

This doesn’t mean you should apply for them and risk running up large bills.

“Ideally, one should have no more than two or three credit cards,” Peterson says. “I would recommend a Visa or MasterCard, followed by an American Express card. Having two or three different cards will allow you more flexibility when utilizing credit, as some companies do not accept one or other.”

2. Understand Consequences of Breaking Rule #1 Even if you have excellent credit and zero debt, applying for too many credit cards can damage your credit rating.

“Generally, inquiries for new credit can affect your credit report for up to two years,” Peterson says. “Having too many credit cards—whether carrying balances or just high amounts of available credit—can negatively impact your credit score. Banks will look at your credit based on what you currently owe and also what ability you have to immediately incur additional debt.”

3. Stop Spending To minimize or avoid debt, monitor your monthly expenses—and halt spending when your budget starts to get tight.

“An additional reason to limit number of credit cards you have is to prevent possibility of not being able to keep track of all of expenses you have incurred, which may make it difficult or impossible to pay them off each month,” Peterson says.

If you reach that point, he has one simple rule: “No more charging.”

“Commit now to discontinue use of credit cards,” he says. “In fact, cut up cards you have, call companies, and close accounts. If you must have a credit card for work, try a debit card. These are widely accepted, and funds are pulled directly from your checking account.”