Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort inorder to help you reach YOUR Financial Independence. Today's guest post comes to us from Karon Powell.
Spring brings with it the urge to clean and the desperate desire to lose weight in preparation for much warmer weather. This Spring instead of going on a food diet, I am thinking more about shedding my financial weight. There have been a lot of articles, TV shows and publicity about debt diets lately but what is a debt diet? A debt diet is simply a weight loss program for all the bills that are piling up in your life. There are quite a few diet options available and can range from twenty-one days to a full year.
In this first stage you also have to be brutally honest about how much you owe. All that mail from creditors piling up in the mailbox, open them and write down in a separate section of your spending diary exactly how much you owe. This part is uncomfortable because it is overwhelming to think about the amount of debt you may have and the little to no money you are taking in that’s available to pay it off. But after looking at your spending you may find that those bills can be paid off over time just like my two credit cards. Now, instead of buying a coffee and lunch I spend that money by transferring the same amount to savings and paying a bill at the end of the month.