Oprah Winfrey's Debt
Diet - Author David Bach Talk About Loans Credit Cards and Consolidation
July 12th 2006
This week the Oprah Winfrey Show is revisiting the Debt Diet Series. In
this group of shows Oprah interviews various families to determine how
each got into debt and how each can get out of debt.
The series breaks down getting out of debt into four steps. The first
step is to determine how much debt you have. This is done by pulling
out your bills and totaling your expenses and debt.
The next step entails tracking your spending. One of Oprah’s guests,
David Bach, says one place to cut spending is the “Latte Factor”. We
need to review our luxury expenses like fancy cups of coffee,
cigarettes, bottled water or fast food. Not spending just $10 per day
can put $3600 in your pocket after one year (or pay your debt).
The third step is to work with your interest rates. The experts
recommended talking with your creditors. Ask them for a lower interest
rate. Save all of the low interest promotional offers you get in the
mail from credit card companies.
Call your creditors and request a lower interest rate. The they say no,
ask to speak to their supervisor. At that time tell the supervisor that
if they don’t lower the rate you are going to pull your money from their
card and use one of your promotionals.
The forth step is to stop spending. Learn to cut expenses. Do you need
all of the cable channels? Would you be better off on the dollar menu
at McDonalds rather than the meal menu? Put the money you save towards
paying down your debt.
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