Americans take control by reducing the one element that is holding them back- their debt.
Lack of money and too many credit cards
The final episode of Oprah Winfrey’s ‘debt diet’ aired last night and the stories are pouring in of families who are taking control.
The plan to reduce the money you owe has been around for five years, (starting in 2006) but this year there has been a rise in participants dew to the economic downturn.
The show teamed up with three families in extreme debt and and on braking point and paired them with finalcal experts, David Bach, Jean Chatzky and Glinda Bridgforth.
Throughout the month of June, viewers saw success and failure as the families were given step by step instructions and implemented them in dad to day life.
How does it work
The aim was of the series, to empower the public by giving them the tools they needed to brake free.
Phase one includes, finding out how much debt you have, tracking your spending, learning the credit card game and refraining from spending more money than you have.
In phase two you create a spending plan, find ways to grow your income, improve your credit score and start saving.
It sound like a lot to take in but the small things like taking a packed lunch to work make all the difference.
Americans love the diet so much that, they tweet, facbook, send videos and even encourage family and friends to start the change.
Growing your money
My neighbor in Clermont, Florida offered to clean my pool weekly instead of me hiring from an external service.
Websites like , Yahoo and Mail.com have offered tips like buying second-hand cars instead of new ones and learning to cook at home instead of going out.
Students are taking the advice as well. Natalie Bastien, a BA Public Relations student in Orlando told me, “I’m going to watch my student loan and pay it back as quickly as possible.”
In regards to credit cards, “I don’t have that problem yet, when I spend on it I pay it back but i will never use it if i can’t pay back the whole amount in on go.”
The message has been well received. According the Global Post more people are working form home using websites like Fiverr.com and saving even more money. This may be that start of a new America, saving instead of spending.
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