If you can afford to pay OVER the minimum payment each month, then you can use an accelerated payoff plan (AKA: "roll up" / "roll down") to avoid paying insane amounts of interest and get out of debt faster. You can use the Dead on Last Payment method as mentioned by David Bach or a system that pays off the highest interest rate card first, which can save you the most money and getting you debt free faster.

But what other options exist?
• Do you have equity in your home for a w:debt consolidation loan?
• Did you know that credit counseling could significantly reduce your interest rates and get you debt free faster?
• What about w:debt settlement? Did you know you could be debt free for lot less than what you owe? ...And completely eliminate interest?
• Is bankruptcy right for you?

These questions are worth looking into. In fact, they could be worth THOUSANDS of dollars to you, if you know your options and make the right choice. They could mean the difference between freeing yourself from debt in 30 years or in 30 months. Don't you think it would be wise to get some quality answers and truly know your options?

TAKE ACTION!

While learning to play the credit card game and getting expert advice about how to lower creditor’s interest rates is important, we think it's more financially intelligent to take it a step further. There IS more out there and you deserve to know the truth about which options exist for you and how each option would impact you. REMEMBER: Always beware of anyone offering only one option. Learn about and consider all of your options before choosing what's best for you.

Debt Diet Step 4: Stop spending.

Teach yourself to spend less and save more every day. This step is everlasting and can take a lot of focus and energy. For many people, they must break life-long habits in order to make this work. Creating your budget will help tremendously. At that point, you only have so much per week, or per month, to spend on any given category (groceries, entertainment, cigarettes, etc). The more to stick to the budget, the more you will begin to get comfortable with it. While you must control your spending in order to overcome debt, it's good to point out that this step holds a SECRET... Money is a highly emotionally charged subject.

Spending is emotional.

So how do we deal with it? How do we control our spending? The secret is that our deep, emotionally driven need to spend money is actually the key to gaining control. Even better, we can harness these same emotional drives that have caused us to spend out of control to awaken our financial genius. If you want more... but instead of being able to afford it, you go into more debt, well, that's not very financially smart. You will need to STOP SPENDING and discipline your self to create and stick to a spending plan. But remember what you want! If you want to spend, that's great! HOW CAN YOU? More income is usually the answer. It's critical to control spending. At the same time, it becomes the perfect motivator for you to stick to your budget and find ways to "trim the fat" AND to earn more money ...so you can buy the things you want! Having a clear, motivating goal and purpose is what you need to stick to any plan, especially a spending plan.

TAKE ACTION!

Decide what you really want and why you want it. Get committed! Then sticking to a spending plan will be possible. Along the way, controlling your spending will become freeing, fun and fulfilling.

• Think about what you really want. Define it clearly and specifically. Write it down as your goal.
• Focus on this goal whenever you meet resistance in starting or sticking to your Debt Diet.
• Realize that in order for you to have what you want, you simply must follow the steps of the debt diet.

Debt Diet Step 5: Create a monthly spending plan.

Creating a budget helps you estimate your monthly expenses and free up money for paying off debt. It is recommended that you divide your budget as follows:
• 35% Housing
• 15% Debt
• 15% Transportation
• 25% Expenses
• 10% Savings

If you get paid more than once per month you can determine which bills to pay from which paycheck. Check all of your bills and plot their due dates on your calendar. Pay as many bills on time as possible from each paycheck. Some expenses, like groceries or entertainment, can be allocated per pay period.

For example, if your monthly plan is $400 and you get paid on the 1st and 15th, you can allocate $200 per check.

TAKE ACTION!

• estimate and plot your monthly expenses
• allocate your take-home pay toward specific budget categories
• assign your paychecks to specific monthly expenses

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