Ben Todd | Jun 3, 2017 | 2
Oprah’s Debt Diet
Oprah’s Debt Diet is a strategy for debt management that became known when a series about it was aired of the Oprah Winfrey Show on February 17, 2006. During the show, Oprah Winfrey and three experts in finance worked together to make a strategy that showed how a person could get out of debt. The three experts in finance on the show where David Bach, Glinda Bridgforth, and Jean Chatzky.
If you find yourself charging too much, leasing too much, and you are in denial, then this strategy was made for you. First Phase
Allow yourself a month to finish each of these steps- one of them can be done in only a week!
Step 1: Discover the amount of debt you actually have.
Now is the time to get serious about all of your debt. Are you aware of how much your debt is actually costing you?
Step 2: Find out where your money is going and find where any extra is to pay your debt.
You need to stop throwing money out for things you don’t need. Utilize the Latte Factor calculator by David Bach to discover where you can save money. You need to begin to pay yourself.
Step 3: Find out how to play the game of credit cards.
Imagine that ten bucks a day isn’t going to change your debt very much? Guess again! If you use this plan, you get rid of $8,000 of your credit card debt in only 72 months.
Step 4: Quit spending money.
Changing things in these small way can make a big difference. Utilize these tips to assist you in spending less and saving so much more. Second Phase
The second phase of Oprah’s Debt Diet contains steps that are more detailed and work better in the long run.
Step 5: Make a plan for how you are going to spend your money.
Use a worksheet and a calculator to make a plan for how you are going to spend your money every month, but make sure that you can stick to that plan.
Step 6: Start increasing your monthly income.
If this means getting another job or selling off some of your stuff, sometime you have to do big things to crawl your way out of debt.
Step 7: Get your debt in order and increase your credit score.
Don’t know which debts you should pay first? Here is a strategy for paying off that debt and increasing your credit score!
Step 8: Know why you spend your money and learn to save!
Try this quiz and find out why you spend your money the way you do. You can then get rid of the temptation and start creating an emergency fund.