purchases is a great way to get out of debt, but it can be difficult to do.
Individuals who are unable to control their spending habits are encouraged to
not carry credit or debit cards with them. If a credit card is used, it is
important to make the payments on time and pay as much of it as you can. It is
also important not to obtain new credit cards during this time or accept offers
of increased spending limits.
Step # 5 - Develop a Monthly Spending Plan
A monthly spending plan, also commonly referred to as budget, is a great way
to allocate money to necessary expenses. A monthly budget is the best because it
can include holidays, birthdays, and other special events that only occur during
certain months. Your budget should include all housing costs and expenses,
transportation expenses, other miscellaneous expenses, and the debt that you
owe.
Step #6 - Develop Ways to Increase Your Income
When developing a budget, there are many Americans who realize that they do
not make enough money to pay for all of their expenses and debt. If you are one
of those individuals then you may want to consider finding ways to obtain extra
income. Extra income does not necessarily mean having to get a second job. It
can also mean altering your lifestyle. The Debt Diet recommends going without a
vehicle if possible and relocating if your current home expenses are too
high.
Step #7 - Develop a Customized Plan to Get Rid of Your
Debt
A customized plan can be developed simply by prioritizing your debt. This
means that you will examine all of your debt and determine which debt you need
to pay off first. The date of the debt, how much it is, and what can happen if
you don't pay it should be examined when deciding what or who to payoff first.
Step #8 - Determine Why You Spend Money and Try to Change
It
Many unnecessary purchases are made when individuals are feeling angry or
depressed. It is also possible that you are an impulse buyer or that you may
have a shopping addiction. Whatever the reason for your unnecessary purchases,
there are ways to change it. Sometimes this process may require professional
help, but other times it can simply be cured with other activities.
Oprah's Debt Diet worked for the guests on her show and there is no reason
why it cannot work for you. As previously mentioned, getting out of debt is
difficult and it will not happen over night. If you sway away from any of the
above mentioned steps do not give up. Try as many times as it may take. Once you
make the steps of the Oprah Debt Diet a part of your daily routine you will be
on your way to being debt free.
Shelly Lowery is a successful writer with an interest in celebrities like Oprah Winfrey. She demonstrates the power of Oprah's">http://www.oprahs-favorite-things.com/">Oprah's Favorite Things list each year on the holiday shopping season. See her report on what products made the list on Oprah's">http://www.oprahs-favorite-things.com/favorite-things-2005.htm">Oprah's Favorite Things for 2005, 2004, 2003http://www.oprahs-favorite-things.com/favorite-things-2003.htm">2003>, and 2002http://www.oprahs-favorite-things.com/favorite-things-2002.htm">2002>.
» left by Dee from NJ (1 year 304 days ago.)
yes, I get it but what if you have NO $$$ I have to feed my family, and that is purchased currently with a credit card Respond to this comment
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Article added to SearchWarp.com on Tuesday, April 18, 2006 View other articles written by Shelly Lowery(153)
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