This was originally posted as one of my Clutterbugs posts, but I think it fits better under my Women and Finance series, so I've changed it up a bit for my Smart Money series.  

Because money is a very important topic for me, I have several different financial coaches that I follow. Suze Orman seems to be the guru of choice these days, but she's not my favorite. I prefer Mary Hunt of EverydayCheapskate.com, Dave Ramsay and Chellie Campbell of Chellie.com. They all have similar programs with minor variations and the good news is that any one of them will work. They all have free newsletters, so why not check them out and see which one you like the best?

I think that men tend to spend more on the big ticket items like cars, boats, etc. But I think as far as the overspenders who rack up the big on-going debts, it seems to be mostly women. Because I run a stamping business, I see a lot of this first-hand. I have seen women drop hundreds of dollars on merchandise that they are going to hide from their husbands in a closet somewhere and probably never even use.

That boggles my mind. I don't see how someone justifies spending what is basically imaginary money, especially on things they don't really need and only think they will actually use.

I mean, don't get me wrong, I have a bit of a weakness for impulse spending, but I never hide it from my husband and I do use everything I buy.  It always baffles me when people spend good money for something and then never get around to using it.  I've got customers who bought stamps from me literally years ago and they tell me they still haven't taken them out of the package.  Weird! 

Plus I'm allergic to debt and even though I do have some debt, I try to avoid it as much as possible and I work really hard to pay it down as fast as I can.  I've been in serious debt before and it's NOT a fun place to be and I don't want to go back there ever again.

Anyway, back to the PDQ Plan. It's pretty simple. You take a spreadsheet or a piece of paper and you list all your debts - large or small. I keep mine on post-in notes on my bathroom mirror so we can both see how we are doing every day.

Some people like to line them up based on the interest rate, but I prefer to line them up small to large. It gives you more of a psychological boost to see them being paid off bit by bit.

It's a little daunting to see all your debts in one place, but it's time to face facts. The amount of money isn't going to be any less if you close your eyes to it. It is what it is and you have to come up with a plan for dealing with it.

Here's how the PDQ plan works. Let's say the smallest bill is a $300 debt that you pay $25 a month on it. The next largest bill is a $500 debt that is $50 a month.

First of all, you cut back on a few things and save money like crazy so you have $100 a month to spend on that little bill. Three months and poof, that little bill is history.

Now you take the $100 a month and apply it to what you are already paying on the $500 debt. At $150 a month, that bill is also gone in just under three months. So in six month's time or less you have eliminated two bills and freed up $150 a month of your income. That kind of money really gives you some leverage when paying your bills. I can't remember the last time I actually just paid a minimum amount due on a bill - it's just a waste of your time.

Then you just go through the rest of your bills in the same manner. It is hard work, but you'll get excited as you see your debt reducing as if by magic. The average time for a PDQ Plan like this to work is 18 months to two years.

That sounds like a long time, but when you look at how long this debt has been following you around, it really isn't too bad. And by the end of the process, you'll have several hundred dollars in extra money every month - some to save for a rainy day and some to spend on all those fun things you would have put on a credit card in the past.  It's not that you can't have some of the things you want, you just need to be smart about it and only spend money you actually have and not just money you wish you had.