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.”

Discharge of student loans received popularity in 1970's. Many individuals would file for bankruptcy shortly after completing their expensive education. The goal was to discharge these student loans before they began earning money.

The wording of exception of a “hardship discharge” and what is considered a student loan has recently been broadened so that most student loans made by nonprofit groups or government are now considered student loans. This only applies to actual student and not a co-signor. So a parent signing for one of their children could not have this debt discharged. In addition, this exception does not include debts to an educational institution for tuition. If loan is nondischargeable then petition on loan is also not going to be discharged.