The Debt Diet

By https://las-vegas.debtcafe.com/ strategy to help America get out of debt. Find out how it can help you and also receive extra "Secret Sauce" to help make the debt diet effective for you!

The first of a multi part series for The Oprah Winfrey Show, where Oprah challenged Americans to get out of debt. Oprah collaborated with three of the world's leading financial experts to create a step - by - step method to help her viewers pay off debt. Top financial experts in Oprah were Jean Chatzky, Glinda Bridgforth and David Bach.

Oprah likened Americas spending habits to our comparable eating habits. She established that excessive spending is comparable to compulsive eating and that America has a high rate of obesity in its debt, not only in its body.

Oprah’s Debt Diet?

By Debt Consolidation US
Oprah introduces a step - by - step strategy to help America get out of debt. Find out how it can help you and also receive extra "Secret Sauce" to help make the debt diet effective for you!

 The Oprah Winfrey Show, where Oprah challenged Americans to get out of debt. Oprah collaborated with three of the world's leading financial experts to create a step - by - step method to help her viewers pay off debt. Top financial experts in Oprah were Jean Chatzky, Glinda Bridgforth and David Bach.

Oprah likened Americas spending habits to our comparable eating habits. She established that excessive spending is comparable to compulsive eating and that America has a high rate of obesity in its debt, not only in its body.

3 households on Oprah had been facing their excessive debts. The Widlund's had the least yearly income of USD 75,000 and had USD 81,000 in debt - first! Then there was the Eggleston's, making approximately USD 92,000 annually plus USD 115,000 in debt. And the Bradley's topped it off with over USD 100,000 a year earnings and USD 170,000 in debt.

The Four Steps of the Debt Diet,WITH some Special "Secret Sauce" added... Enjoy!

Step one of the Debt Diet: What exactly is your real debt amount?

Calculate just how much debt you truly have so you are able to begin paying it down.

Frequently times many people do not even know just how much debt they truly have. This is a vital step to get your debt under control.

A three - in-1 credit report would be an excellent idea. A three - in - one credit report is usually really a combined credit report of all 3 credit bureaus (Experian, Tranunion and Equifax). Regardless of whether you frequently get monthly statements or not, running this particular kind of credit report will show you any old debts that you still may owe, together with anything that could be being reported to the bureaus that you might not be liable.

Step one of the Debt Diet - Our Special "Secret Sauce": What "kind" is equally as important as how much...

Knowing your "Point A", your "current reality" or the place you are starting from IS the very best place to begin. In case you were driving to New York and didn't know exactly where to begin from, exactly how would you determine where to go?

Knowing just how much debt you have is only one side of the coin.The other side is understanding what type of debt you have.

Understanding just how much of each kind of debt you have will make an enormous difference in understanding which options are available for you, And just how each alternative will effect you.

TAKE ACTION!Organize your debt into these categories:

• secured debt - any Debt Secured by a title or asset (house, RV, boat, motorcycle, car, etc.) is regarded as Secured Debt. This might also include dirt bikes, quads, jewelry, or furniture.• "Qualified" Unsecured Debt - This includes all unsecured debt (debt NOT secured by a name or asset) which could be eligible for debt management programs including credit counseling, debt negotiation / settlement or some other debt management programs.Qualified unsecured debt includes credit cards, private loans, credit unions, hospital & health bills, collection accounts, and deficiency balances.Some examples of unsecured debt which is not qualified for debt management programs including payday loans, cash advances, MAC tools, Military accounts (Star, Omni, etc.), public utilities, personal loans from relatives or friends, and student loans.• Other Unsecured Debt - All unsecured debt ""not included"" above • Student Loan Debt - Self explanatory.• Tax Debt - Any debts owed to the IRS or State TAX authority.

Once you understand how much of each kind of debt you have, document it and keep it handy. Update your information and keep it current if your situation changes.

Step two of the Debt Diet: Track your spending and locate additional money to pay down the debt.

Cut back on daily extras and find savings where you least expect them.

Track Your Spending: It is a multi part step. The very first part is to track your expenditures. Track every penny you spend - on food, bills, gum, coffee, etc. - and write it down for later review.

The power of this alone can be tremendous. It can reveal how much of your money is spent on the small things. This is what one of Oprah Experts talk about as the "Latte Factor®." What if you choose to purchase a latte daily, considering it costs USD five? But added to the soda each day, a snack from the vending machine at the office, some gum and perhaps a candy, too it really starts to add up! Simply USD ten per day is able to double the minimum payment on a USD 10,000 credit card! Which is more or less USD 3,600 yearly!

Trim the Fat: The next component for this process is "trimming the fat." Have a look at where you are spending your money. It is time to sacrifice. Use a budget calculator to find additional cash paying down your debts. From cutting back to standard cable or refusing to eat out so much to downsizing your big-screen T.V. and giving up the additional car, cutting back on these additional expenses can truly cut back on your total debt!

The Second Step of the Debt Diet - Our Special "Secret Sauce": Did you know That nearly all individuals Spend 10 % A lot more than They make?

You probably know just how much cash you earned last month, but exactly how much did you spend it? Or do you know the amount of money you have left to spend next month? If you do not, you are not alone, most people do not know.

The fact is the majority of us spend 10 % more each month than we make. According to the typical American income, that amounts to USD 431 a month. It is no wonder the average debt on a credit card is now at USD 8,500!

Why is tracking your expenditures so hard? We are now living in a society which is nearly cashless today. Using wire transfers, automatic deposits, credit cards, and debit cards, we seldom even see our funds. It is much easier than ever before to spend, spend, spend!

We Need A New Way To Manage Our Money

Traditionally, individuals divided their cash into many paper envelopes to manage their cash. An envelope for meals, entertainment, utilities etc. They subsequently spent their cash from these envelopes. They always knew just how much cash they still had to spend and how long it would last. So how do we use such a simple, effective system nowadays, when we do not even see the majority of our money?