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| Source: http://www.oprah.com/money/Oprahs-Debt-Diet-Step-5 |
1. Calculate your debt - add up what you owe.
2. Track Your Spending
Cut the waste and find ways to increase income
3. Learn how to play the credit card game
A. Pay more than the minimum payment
B. Call to reduce the interest rates and fees
C. Get your credit score
4. Stop spending!
5. Create a monthly spending plan for your take home pay:
35% - Housing - domicile, insurance, repairs, maintenance, taxes, etc.
15% - Transportation - vehicle, fuel, insurance, registration fees, maintenance, repair, etc.
25% - Other - regular fees for cellphones, tv, Internet, meals outside of the house, travel, movies, books , etc. This is the "your life" part of the budget.
15% - Debt - credit cards, student loans.
10% - Savings - this is where you get rich.
6. Grow Your Income.
7. Prioritize Your Debt And Raise Your Credit Score
Home, vehicle, student loans take priority.
8. Understand Why You Spend And Start Saving - plan your spending.
I'm thinking there are a lot of people who followed this advice - which was brought out before the 2008 Stock Market Crash - and are grateful they did. I'm thankful she had the thoughtfulness towards her viewers to make this series a reality.
As stated before, there are some changes that have since been made to these steps, be sure to check out her Debt Diet Action Plan page for the details.
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