Suze Orman...what do you think?

[jetset]

What do you think of Suze Orman's advice? A lot of people say her advice is just a bunch of common sense. I have to disagree. I watch her show religiously, and true, while some of her advice is just obvious common knowledge, she mixes it with pretty good information.

So, what do you all think of her?

[HHM]

On the whole, she gives pretty good advice.

But, you really need to parse the context in which she gives her advice.

I watched recently where a caller asked about a garnishment and her response was basically, why would you skip out on your obligations.

She gives good financial advice for those that are in a "good" financial position. But for those that are struggling, she tends to over-emphasize the importance of credit and the "moral" obligation to make good on debts.

[susan1215]

I like her, and watch her show every week. Sometimes I wonder about the people who call into her Can I afford it? segment, even I know when you have a ton of debts and no savings then that means you shouldn't be buying anything that isn't a necessity.

[jetset]

On the whole, she gives pretty good advice.

But, you really need to parse the context in which she gives her advice.

I watched recently where a caller asked about a garnishment and her response was basically, why would you skip out on your obligations.

She gives good financial advice for those that are in a "good" financial position. But for those that are struggling, she tends to over-emphasize the importance of credit and the "moral" obligation to make good on debts.

I remember that - on the other side though, just recently there was a lady calling in who had been sued some time ago for an auto accident that was her fault (8 years ago I think) for an outrageous amount, I believe it was $200,000. She never had the money so she really was never pursued for it. Now, she has inherited $500,000 and is concerned she is going to have to hand it over to the victim. Suze's advice was, sit tight for two years, and they cannot legally come after you because of statute of limitations laws. I thought that was a slimy response - here this woman could have injured or killed someone in a car accident, and left the victim or the victims family with the bill. What a bunch of crap.

I like her, and watch her show every week. Sometimes I wonder about the people who call into her Can I afford it? segment, even I know when you have a ton of debts and no savings then that means you shouldn't be buying anything that isn't a necessity.

I feel like such a hypocrite when I see this segment. Mainly because people call in and think they can afford something that they obviously cannot, and I just can't help but think how stupid they are. And then I think to myself, that was me 3 years ago. It's easy to feel that way when you've been there, and have learned from your mistakes.

jetset

[justplaintired]

I like her attitude and she seems like a very smart lady. I have watched her show. Honestly though, I don't watch it much. The reason, she makes me feel sort of guilty for being in debt. I mean I know we shouldn't be, that doesn't change the fact we are. I would love to go another route to get out of this hole, but I can't find one. If I could come up with $33k someway to not be here I would. If suddenly we could get great jobs making tons of money, that would be great. But that isn't going to happen. So for me, she just adds to my guilt. So even though I think she is very smart, I don't think her advice will help us.

Far as having money to invest, well, that is not my life, doubt it ever will be. We are part of the dying middle class, and the way things are going, paying our bills is about all we will ever be able to do. That's one reason I never want another cc. Living simply is all I want.

[robivi3]

Unlike Kimosabe or Kiyosaki or whatever his name is she adds ACTUAL useful info plus common sense. She at least gives believable stories even if they are half truths. She gives names and places and actual company names.

[epiphany]

Unlike Kimosabe or Kiyosaki or whatever his name is she adds ACTUAL useful info plus common sense. She at least gives believable stories even if they are half truths. She gives names and places and actual company names.

Believable stories that are half truths? Um, that sounds like really good lying.

Not up on the whole Suze thing. Have caught her show a few times, but I am with others who say that it is really for people who are already in a good financial situation.

ep

[jetset]

Believable stories that are half truths? Um, that sounds like really good lying.

Not up on the whole Suze thing. Have caught her show a few times, but I am with others who say that it is really for people who are already in a good financial situation.

ep

I have to disagree. A lot of the people who call into her show for advice are in deep %$@#. Tonights episode featured a caller who had 130,000 in credit card debt, and two mortgages. That's not a very good financial situation.

[epiphany]

I have to disagree. A lot of the people who call into her show for advice are in deep %$@#. Tonights episode featured a caller who had 130,000 in credit card debt, and two mortgages. That's not a very good financial situation.

What was her advice for him?

ep

[jetset]

What was her advice for him?

ep

Well, the caller was a self employed woman with a home in Houston and Florida. Suze has always insisted on never using your homes equity to pay off credit cards, because it could jeopardize your ability to pay the higher mortgage. In this case, since the CC debt was costing her so much monthly ($3900.00 in minimum payments) and the woman was already falling behind on payments, she told her to refinance the one home in Houston, which had equity, to pay off the credit cards, and to rent out the home in Miami until her business picks up. She also advised her about short sales.

Let's say in the future the woman has no credit card debt but cannot afford the (now higher) mortgages. She will face foreclosure and lose her home, whereas before, with the lower mortgage before refinancing, she could have filed Chapter 7, kept her home, and discharged the unsecured debt. This is why Suze normally does not like people to refinance to pay off unsecured debts, i.e. credit cards.

jetset

[epiphany]

Well, the caller was a self employed woman with a home in Houston and Florida. Suze has always insisted on never using your homes equity to pay off credit cards, because it could jeopardize your ability to pay the higher mortgage. In this case, since the CC debt was costing her so much monthly ($3900.00 in minimum payments) and the woman was already falling behind on payments, she told her to refinance the one home in Houston, which had equity, to pay off the credit cards, and to rent out the home in Miami until her business picks up. She also advised her about short sales.

Let's say in the future the woman has no credit card debt but cannot afford the (now higher) mortgages. She will face foreclosure and lose her home, whereas before, with the lower mortgage before refinancing, she could have filed Chapter 7, kept her home, and discharged the unsecured debt. This is why Suze normally does not like people to refinance to pay off unsecured debts, i.e. credit cards.

jetset

Thanks. I don't get it. You had me up until the second paragraph and I am not really sure what you are saying. I read it several times and it makes no sense to me. Could be the way it is written but I am not ruling out the possiblity that it is me.

Just seems to me, according to your second paragraph, the woman was better off filing in the first place. What am I missing?

As an aside, I am listening to a podcast of Bill Handel (LA radio host) right now, and he just said that Suze is going to be on his show on Monday. I will definitely hear it.

ep

[keepmine]

On the whole, she gives pretty good advice.

But, you really need to parse the context in which she gives her advice.

I watched recently where a caller asked about a garnishment and her response was basically, why would you skip out on your obligations.

She gives good financial advice for those that are in a "good" financial position. But for those that are struggling, she tends to over-emphasize the importance of credit and the "moral" obligation to make good on debts.

I think this is true about most personal finance sites. I think Your Money on MSN gives as good of advice on budgeting and retirement planning as you can get to posters who have money. God help you if you post over there with large debt levels or a past bk.
I've watched Suze for a few minutes here and there and she doesn't seem all that special to me.
I think post bk, common sense says we all need to do the same thing. First, fix what created our bk. Then, start, living below our means, save money, max out 401K's, have adequate insurance and then, go forth and sin no more {financially speaking}.

To justplaintired,

I hate it when people make these sort of statements:

We are part of the dying middle class, and the way things are going, paying our bills is about all we will ever be able to do.

I know you're stressing and struggling right now but, once you file and are discharged you need to look on the fresh start as the "sky's the limit sort of thing". Don't just settle for the status quo. You're better than that! Heck-we're all better than that!

[jetset]

Thanks. I don't get it. You had me up until the second paragraph and I am not really sure what you are saying. I read it several times and it makes no sense to me. Could be the way it is written but I am not ruling out the possiblity that it is me.

Just seems to me, according to your second paragraph, the woman was better off filing in the first place. What am I missing?

As an aside, I am listening to a podcast of Bill Handel (LA radio host) right now, and he just said that Suze is going to be on his show on Monday. I will definitely hear it.

ep

I was giving a "WHAT-IF" scenario to explain why Suze advises her listeners never to refinance to pay off credit cards, and I was using that woman as an example. The woman cannot afford her bills as it stands. She wants to refinance her home to take the cash out. IF she can't afford the new higher mortgage payment - because she is borrowing additional money - and falls behind on her mortgage payments, she will go into foreclosure.

The credit cards are unsecured debt, therefore if you stop paying them, those banks cannot come after your home. But if you cannot make your mortgage, which is secured debt, you will be foreclosed on.

I'm kinda in the middle. I think consolidating credit card debt using your mortgage is something that helps a lot of people, but what good is getting out of your credit card debt if you now can't afford the higher mortgage.

[magyar123]

Suze Orman is a snake oil salesperson

[HHM]

I think consolidating credit card debt using your mortgage is something that helps a lot of people,

That is not true. Consolidating credit card to secured mortgage debt is usually more costly in the long run, people tend to not stop using their credit cards after they do the consolidation, and consolidating limits your options with the debt in the future.