Definition

Debt diet is a concept for the debt management, given by the Oprah Winfrey. It was first on aired on 17th February, 2006. In this series, Oprah Winfrey gathered some financial experts, including David Bach, Jean Chatzky, and Glinda Bridgforth in order to develop step by step plan for the management of debt. This plan is based on 8 steps, and these steps are associated with an individual for the calculation of essential cost and curtail excess cost.

Explanation of Debt Diet

It is an innovative and dynamic online program based on mobile optimization. This program can help people in order to change their behavior regarding spending and saving. This program clearly shows how the decrease of $10 spending can make a significant change.

The experience of an individual begins with the short assessment that is used to determine the readiness of an individual to repay his/her debts or to arrange emergency cushion. On the basis of this assessment, an individual will fall into one of the following phases: not ready, getting ready, ready, taking action, and staying with it. The 6th category is for those individuals who have no debts and they need to save money as per given plan. Data is stored for using this program and the individual will be informed about their activities which are started or completed.

Following are the 8 steps of this plan,

1: How much debt do you really have?

2: Track your spending and find extra money to pay down debt

3: Learn to play the credit card game

4: Stop spending

5: Create a monthly spending plan

6: Take big steps to grow your income

7: Prioritize your debts and raise your credit score

8: Understand your spending issues and save