Credit card debt has been growing at a steady pace for many Americans over the years. Millions of Americans are having difficulty even keeping up with minimum monthly payments, let alone have the ability to pay off the debt. For most, the debt cycle is an unending one, in many cases requiring credit counseling to end it.

But the debt, especially credit card debt can be a costly affair not just in terms of monies owed, but in the realm of your credit score and credit report. Unpaid debt can be lead to a lowered credit score, affecting negatively the credit report requiring time consuming credit repair.

The last thing you want to do after paying off your debt is to get back into debt again. However, statistically it has been shown over and over again, that once people get out of debt rehab, they go back to credit card addiction.

Henceforth, it is time to shift your mind away from the cycle of debt, debt consolidation, and credit counseling. It is time to start anew. It is time to shift your thoughts away from just debt reduction to how you can avoid debt.

But remember, not all debt is bad, home buying, student loans, and school loans are considered good debt. You will always have some form of debt in life, the Super Rich among us even have it, but they are more sophisticated in their use of debt, they call it leverage.

According to the Federal Reserve Board’s Surveys of Consumer Finance, the country’s richest 1% piled on $342 billion in new debt between 1998 and 2004. The richest 1% of Americans are households with net worth, (including primary residence) of at least $6 million.

The richest 1% of Americans, own 34% of all privately held wealth, never has wealth been so highly concentrated in a relatively few hands. Such disproportionate control of wealth is accompanied by a holding a disproportionate amount of debt. The same 1% holds 7% of the nation’s total consumer debt, roughly $650 billion.

Unlike the average middle class American who spends his paycheck on a new car or a big screen TV, the rich leverage debt or invest it to make more money.

The reason I am sharing this with you is not because I want you to start playing the credit card arbitrage game, but to avoid and stay off consumer debt. It is going to be a lifestyle change, a change of habits, and a change in thinking; this must be done to avoid consumer debt.

Here are Six Simple Rules for avoiding debt and controlling your finances:

Start an emergency savings fund, preferably to meet three to six months of expenses. Mitigate risk. Get proper car insurance, home insurance, health insurance, disability insurance, and life insurance. Recognize you weakness with regards to credit card use and change the habits. Budget monthly. Track your income and expenses on a monthly and yearly basis. Think long-term. Don’t be myopic with your finances. Do long-term financial planning Stay vigilant of your finances and disciplined in your spending.

If you follow the above rules you will be okay in your finances for the long-term.