Oprah’s Debt Diet…

I watched Oprah’s recap of her Debt Diet series last night. For those who watched the Debt Diet last season, you will know that it highlighted three families who were struggling with their finances and deep in debt. You can read more about it here on Oprah’s Website.

Here is a brief introduction of the families and how they performed on the Debt Diet in just one year!!!

The Bradleys: Lisa and Steven Bradley have two children, Madison and Michael. Lisa works as a case manager, while Steven is a government employee. Together, they made $102,000 a year but were $170,000 in debt.

Result: With Jean Chatzky’s help, Lisa and Steven paid off $50,000 in debt. They sold two cars, which brought in $30,000. They also paid off $7,000 in medical bills and $3,000 in credit card debt. By taking back a big-screen television, they saved an additional $2,000.

Key to their success? Lisa and Steven started saving and they did not start spending again. Lisa saved $5,000 by not going to the mall every day and $6,000 by not eating out three times a day.

They also managed to increase their income by $26,000 when Lisa took on a second full-time job and Steven worked overtime. Currently, they have $6,500 in savings, and they're saving another $2,500 a month for the next year. Then, Jean suggests that they scale their savings back to about $1,000 a month. When Lisa and Steven are ready to retire, Jean predicts that they'll have $1.7 million in the bank.

Comments: Wowza…I am so proud of the Bradleys!!! Keep up the good work!!! They genuinely seemed a lot happier and like this brought them together in so many ways. I hope they continue to work hard and reap all the benefits. Too bad their friends turned their backs on them. They could have learned a lot about strength, honesty, and their finances.

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The Widlunds: Marnie and Mark's combined annual income was over $75,000 but they had no retirement savings, no college savings for their two daughters, Victoria and Gracie, and no life insurance. They were $81,000 in debt.

Result: After a year on the Debt Diet, their debt increased by $37,000. Marnie and Mark admitted that they stopped listening to Glinda Bridgforth’s suggestions and stopped following the Debt Diet principles about six months into the program. Marnie even stopped speaking to their money coach entirely. Although the Widlunds ended up deeper in debt, they did refinance their home, pay off some bills and increase their income by more than $15,000.

Comments: This is so sad. The Widlunds could have turned things around with Glinda Bridgeforth’s help. It’s unfortunate that the Widlunds did not take advantage of a one in a lifetime opportunity to work with a financial expert for free in order to secure a better life for themselves and their daughters. Marnie seemed (to me) a little defensive on the program, saying the Debt Diet was too intrusive. Finances are personal. So, if someone is willing to help you, they will have to go over your finances with a fine tooth comb and will have to be intrusive on some level.

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The Egglestons: Sally and Dan Eggleston have three children, Emily, Danny and Sam. Dan is a fifth grade teacher and Sally is a fourth grade teacher. Together, they made $92,000 a year but were $115,000 in debt. They had 12 maxed out credit cards.

Result: The Egglestons paid off $26,000 in debt. The first money-saving technique David Bach taught the Egglestons was how to lower interest rates and waive credit card fees with one phone call. By calling and writing letters to credit card companies, the Egglestons reduced the rates on 11 out of 12 cards resulting in a savings of $15,000 in interest payments.

The Eggleston’s increased their income by $19,000. Sally taught summer school and Dan raised the rates at his lawn care business. Their financial decisions also helped them raise their credit score by 100 points which allowed them to qualify for a standard 30-year mortgage saving them $400 a month.

Comments: Go Egglestons!!! I am also very proud of them. They exhibited a very “go get em” positive attitude and were really committed to turning things around. I wish them the very best and continued success!!!

*** Info from Oprah's website. Check it out guys...You will be inspired!