OK, so you went ahead and refinanced your house to pay off your high interest debt. You have made a great choice, but don't stop making smart decisions. Think about the behavior that got you into financial difficulty in the first place.

Don't fall into the same trap. Did you pay for high ticket items such as a large Plasma TV or a tropical vacation with your credit card? Unless you have the savings to pay the balance off the next month this will lead you into the same credit hole. You have already used the equity in your home, so you will not have the ability to do this again, leaving you with the same high interest debt you had combined with the higher mortgage payment due to the refinance.

Use the money saved from the refinance to pay yourself. You have likely saved several hundred dollars a month when you refinanced by spreading it over more time, at a lower interest rate. Take that money and put it into a money market savings account, CD, or IRA. You have earned that money so why not keep it for a rainy day fund, save for a vacation or better yet your retirement.

You can do this by planning a budget and sticking to it. Use UWSA's budget calculator to help you allocate your income to pay your bills, budget for groceries , gas, and savings. Put your monthly bills on an automatic payment plan using a dedicated checking account. This will ensure that they get paid on time every month, and help increase your credit score. Transfer money into this account each month, and keep a small surplus in the account. Using a credit card that gives cash back for grocery or gas purchases is a smart way to make these purchases. It is convenient and some cards give a pretty decent reward for using them for these purchases. Just make sure that you budget for and pay the balance each month.

Take advantage of employer benefits. Does your company offer a cafeteria plan for expected medical expenses? If you have a prescription you need to fill every month or a child that will need braces you can save for these expenses with pretax dollars. This will lower your taxable income, and help stretch the money you will spend on these items. An employer 401k plan will also help you save for your retirement with pretax dollars. Many employers will match a portion of your contributions, so save until it hurts.

Keeping your finances in order takes planning, discipline and a commitment to stay ahead. Following these sound practices will help you stay out of credit card debt and begin to build personal wealth.