Debt Street

Reporter: Gavin Alder

No matter the postcode, nearly every street in Australia is bleeding financially. Welcome to debt street where the residents struggle from pay to pay

We challenged Australia's queen of frugal, mother of three Fiona Lippey and her team to dig them out of debt. "I run a website and we help people save money on everyday expenses. At the moment we're savings our members $4.7 million a year and that's just by changing simple habits", Fiona said.

They are simple habits that may just save this entire street from financial ruin. "The reason why everyone's here -- and it's a whole street -- is because if one house repossessed and sold for one hundred thousand less than it's worth, then all the houses drop in value", Fiona said.

Fiona has two weeks to prevent everyone's bottom line from bottoming out. Fiona says she can save each family $10,000.

But it's no street party and straight away the examination begins. After crunching the numbers, Fiona has stripped every household of financial fat.

Gordon and Judy are in their 50's and looking to retire . They argue over the credit card.

Mark and Kathy in their 40's have two daughters. They watch every dollar but disagree when it comes to groceries.

Michael is 30's with a wife and two children. On a single income, Michael lives his life tight.

Lesley, 57 is a, carer to her husband. The grandmother is in danger of losing her home, but dollars in the dusty garage could help.

For Sandra and Jane, single and in their 40's. it's the credit cards that clutter their cashflow.

And Daniel and Linda's grocery bill is killing their cash flow and soon they'll have an extra mouth to feed.

So 14 days on, is this bunch of spenders on the road to being a debt free street? Every resident did, with impressive savings, that really add up over a year. "If they stick to it, they'll save $23,000 a household", Fiona said.

Now keep in mind that's $23,000 after tax -- It's like the boss offering you a pay rise of more than $30,000 a year and you wouldn't say no to that would you?

So here's how Fiona says you can give yourself the pay rise you deserve by following a new regime of spending discipline.

She has five key tips:

1. Count your spending in hours. If you earn $15.00 an hour, is coffee and cake at $7.50 worth half an hour's work?

2. Take control -- keep a diary of where you spend your cash on what you spend it on.

3. Cut out impulse purchases, by making a shopping list and sticking to it.

4. Ditch the credit card - stick to cash - it'll make you think twice about purchases.

5. Treat yourself - maybe a weekend away - once you hit a savings goal

For further information visit Fiona's website at: