Oprah's Debt Diet: What It Is & How You Can Benefit
Over a decade ago, talk show host Oprah Winfrey presented her viewers and fans with an 8-step program for debt management. It was designed to get people thinking about their debt, taking control of it, and eventually eliminating their debt altogether. This included credit card debt, loan debt like mortgages and student loans, and unpaid bills debt. Even though this process was originally developed in 2006, it still holds ground today as a solid way to evaluate your debt and begin to change your financial situation.
If you are facing mounting financial debts, you know that it may seem impossible to overcome. But we can help. Follow the steps below, part of theOprah Debt Diet—a step-by-step guide to changing your habits and getting out of debt—brought to you by your friends at North Country Savings Bank.
Oprah Debt Diet Process
Step # 1: Determine Exactly How Much Debt You Have.
Collect all of your current and overdue bills or request a copy of your credit report and figure out exactly how much you owe.
Step #2 : Eliminate Unnecessary Expenses.
Do you grab a soda or coffee while at work? They add up quickly. Track all of your purchases for one week and determine which items you can live without.
Step #3: Learn About the Credit Cards You Have.
Don't fall victim to late fees, annual fees, and high-interest rates—know how a credit card works. And keep in mind that minimum payments may sound great, but in reality, they just keep you in debt longer.
Step #4: Learn to Cut Back on Your Spending Habits.
If you are unable to control your spending habits do not carry credit or debit cards. If you use a credit card, make the payments on time and pay as much of it as you can.
Step # 5: Develop a Monthly Spending Plan.
Give yourself a budget and stick to it. It should include all housing costs and expenses, transportation and other miscellaneous expenses, and the debt that you owe.
Step #6: Develop Ways to Increase Your Income.
Consider finding a second job or try altering your lifestyle. Go without a vehicle if possible and relocate if your current home expenses are too high.
Step #7: Develop a Customized Plan to Get Rid of Your Debt.
Determine which debt you need to pay off first and prioritize. The age of the debt, how much it is, and what can happen if you don't pay it back should all be considered.
Step #8: Determine Why You Spend Money - and Try to Change It.
Sometimes this process may require professional help, but other times it can simply be cured with other activities.
To conclude, getting out of debt is difficult - and it takes time. But once you make these steps part of your daily routine, you will be on your way to being debt-free. Stop into yourlocal North Country Savings Bank branchfor additional advice on how to manage debt.
FAQs
You have a choice in how you spend your money, so having a spending plan in place is always proactive and empowering. A spending plan, like this pie chart, is the road map you need to get to your destination—a debt-free life.
What is the step 5 of the debt diet? ›
You have a choice in how you spend your money, so having a spending plan in place is always proactive and empowering. A spending plan, like this pie chart, is the road map you need to get to your destination—a debt-free life.
What is the debt diet plan? ›
- Step 1: How much debt do you have? ...
- Step 2: Track your spending and find extra money to pay down debt (find your latte factor®). ...
- Step 3: Learn to play the credit card game. ...
- Step 4: Stop spending. ...
- Step 5: Create a monthly spending plan. ...
- Step 6: Take big steps to grow your income.
What is Oprah's diet plan? ›
The 69-year-old wowed all with a slimmed physique and as revealed from her diet it is not far from being attainable. She consumes 1,700 calories daily. Her diet comprises 20 percent protein, 30 percent fat, and 50 percent carbohydrates. Here are a few diet secrets of Oprah that help her stay fit.
What actions did the Bradleys take that are getting them out of debt and how much could they save by the time they retire? ›
They also paid off $7,000 in medical bills and $3,000 in credit card debt. At Jean's insistence, the Bradleys took back a big-screen television, which saved them an additional $2,000. The key to their success was that once Lisa and Steven started saving, they did not start spending again.
What is the Oprah debt diet? ›
Over a decade ago, talk show host Oprah Winfrey presented her viewers and fans with an 8-step program for debt management. It was designed to get people thinking about their debt, taking control of it, and eventually eliminating their debt altogether.
What are the 5 golden rules for managing debt? ›
Master your money with 5 golden rules of personal finance
- It's a simple rule, but it's still the most potent piece of money wisdom: don't spend more than you earn. ...
- Rule 2 – Create an emergency fund.
- Rule 3 – Pay down debt as a priority. ...
- Rule 4 – Create money goals. ...
- Rule 5 – Make your money work for you. ...
- Recommended reading.
What is the 50% rule diet? ›
Follow the 50/50 plate method for your meals, filling half your plate (by visual volume) with non-starchy vegetables and 50% (by visual volume) with minimally processed starches. Choose fruit for dessert. 3. Greatly reduce or eliminate added sugars and added salts.
What is the Fabulous Four diet? ›
The Four™ method is designed to balance your blood sugar with four main components: protein, fat, fiber, and greens to keep you full and balanced. I incorporate Four™ meals every 4-6 hours to support blood sugar balance, satiety levels and ensure I am reaching my daily protein intake needs.
What does Oprah eat for breakfast every morning? ›
What does Oprah Winfrey eat for breakfast? Oprah's first meal of the day will vary. She enjoys smoothies with berries, fruits, and nuts that she blends with orange juice and yogurt. For a sweet fix, she will have a chocolate-strawberry smoothie or swap out the chocolate for an orange.
Walking, eating a healthy mix of foods, and enjoying occasional treats are among some of the methods she's used to shed pounds. The singer also says she uses infrared saunas and cold plunges. “Walking in the city is quite the workout. I'm really into infrared saunas right now.
What is the #1 weight loss pill? ›
Phentermine is the oldest and most widely used weight loss medication. It was originally used as a short-term medication to jump-start weight loss, but now newer medical guidelines have added it to long-term therapy. Some patients may lose about 5% of their body weight by taking phentermine.
Can I retire at 55 with $2 million? ›
Is $2 million enough to retire? Yes, $2 million should be enough to allow you to enjoy a comfortable, happy retirement that suits your needs and preferences.
Can I retire at 65 with 2.5 million dollars? ›
With careful planning, $2.5 million can fund a comfortable retirement starting at age 60. But as with any major life transition, retirees must weigh a complex set of variables from taxes to healthcare to ensure their nest egg lasts decades.
What percentage of retirees have $1 million dollars? ›
However, the reality for most Americans is quite different. According to the Federal Reserve's latest Survey of Consumer Finances, only about 10% of American retirees have managed to save $1 million or more.
What is the step 8 of the debt diet? ›
Debt Diet Step 5: Create a monthly spending plan. Debt Diet Step 6: Grow your income. Debt Diet Step 7: Prioritize your debts and increase your credit score. Debt Diet Step 8: Understand your spending issues and save.
What is the 5 2 money diet? ›
It takes the principle of the traditional 5:2 diet (where you eat normally for five days and fast for two) and applies it to your spending, so you end up putting the money you save on your fasting days towards your savings.
How do I get out of debt step by step? ›
If you're ready to get out of debt, start with the following steps.
- Pay more than the minimum payment. Go through your budget and decide how much extra you can put toward your debt. ...
- Try the debt snowball. ...
- Refinance debt. ...
- Commit windfalls to debt. ...
- Settle for less than you owe. ...
- Re-examine your budget.
What is the debt workout process? ›
Generally, the workout includes waiving any existing defaults and restructuring the loan's terms and covenants. The primary goal of a workout is to restructure debt, avoid default, and resolve financial distress without resorting to formal bankruptcy proceedings.