Debt Diet: Know The Way to Free from Debt Burden

What is Debt Diet?

Debt Diet can be defined as a debt management plan that has been made popular by a show named The Oprah Winfrey Show that is a multi-part based series. The airing of the show had first started in the year 2006. Oprah Winfrey had collaborated with the financial experts David Bach, Glinda Bridgforth and Jean Chatzky in order to develop a step-by-step based plan that helps in demonstrating the ways of getting out of debt.

Debt Diet is considered to be a comprehensive platform that is developed with the help of collaboration with a national financial expert Jean Chatzky. This is considered to be an innovative and dynamic optimized program that is able to help the reduction of financial stress.

This is further based on the distinct stages that are a part of the readiness and the leverages of different targeted approaches which can help people to move forward. The applicability of Debt Diet is quite wide and the process is helpful in fulfilling the needs and demands of people as well.

How does Debt Diet work?

The experience of the users of Debt Diet Plan mainly starts with the brief assessment of the readiness levels of customers to pay the debts or develop a cushion for the time of emergency. After this assessment has been done, the users are divided into different categories that include, Not Ready, Getting Ready, Ready, Taking Action and Staying With It.

The last category is mainly related to the employees without any debt beyond the mortgage that they have to save. The users are prompted automatically on a periodic basis in order to reassess the readiness so that the users are able to put aside 10 Dollars per day and they are also provided with feedback based on the progress after the first assessment had been done.

The menu in the Diet Plan of the users is further updated along with some major recommendations that are related to activities which are related to the current needs. The email reminders are configured to prompt the users for development re-engagement with this program.

The Debt Diet Plan mainly generates specific reports that are user based and the details of the program are related to proper utilization of resources. The reports are mainly based on the readiness of the population so that they can pay down the debts and can establish the emergency funds.

What are the Steps of the Debt Diet?

The Debt Diet Plan that has been suggested in the Oprah Winfrey Show with proper collaboration with the financial experts is based on two major phases. The two phases and steps of the plan are as follows,

Phase 1

The first phase of this plan consists of four steps that need to be completed within the first month.

Step 1 – What are the levels of debts that they have?

This step is based on the analysis of amounts of debts that the individual is currently living with and the costs related to the debts.

Step 2 – Tracking the spending and finding the extra money in order to pay debts.

The extras need to be reduced in this step. The Latte Factor calculator by David Bach can be used by the individual in order to find the big savings in the areas where they are not expected.

Step 3 – Learning to play a credit card game.

The thinking needs to be based on the long term investments that are being made based on the debt within 3 years. The calculation needs to be based on the 8000 Dollar savings rather than the 10 Dollar per day savings.

Step 4 – Stopping high spending.

The small changes that are made are able to help in a major way and the tricks can help in reduction of spending and increasing the savings as well.

Phase 2

Second phase of Debt Diet and the steps can also become highly detailed based on the long term based goals.

Step 5 – To create the plan based on monthly spending

Using the plan based on monthly spending calculator and worksheet for the purpose of developing a budget which will help in increasing the savings.

Step 6 – Taking the big steps for growing the income levels.

The major choices that need to be made by the individuals are based on gaining a different job or selling the assets in order to reduce the debt levels.

Step 7 – Prioritizing the debts and raising the credit score.

The confusion related to reduction of the debts needs to be cleared and the plan is made with the help of proper improvement of the credit score.

Step 8 – Understanding the issues of spending and saving.

The quiz needs to be taken by the individual and reasons of spending have to be analysed. The temptation of spending is resisted and an emergency fund has to be developed as well.

What are the Important Books On Debt Diet?

The major books based on Debt Diet that can be useful for the individuals are “The Debt Diet: An Easy-to-follow Plan To Shed Debt And Trim Spending - by Ellie Kay – America’s Family Financial Expert”, “Put Your Debt on a Diet: A Step-by-Step Guide to Financial Fitness by Stanley J. Kershman”, “Dear Debt – A Story About Breaking Up With Debt – by Melanie Lockert”.

How Our Expert Can Help with Debt Diet Topics?

Our expert will be able to provide support based on the ways by which you can understand the method based Debt Diet Plan. The understanding based on the usage of Debt Diet is also provided to the individuals so that they are able to use it for their convenience.

You will be able to develop major knowledge based on the ways by which Debt can be reduced in order to improve your credit position. The enhancement of your credit score will be supported in a huge manner by the information that the experts are able to provide based on the detailed use of Debt Diet Plan.