Suze Orman said...

[plasticman]

I listened to the Suze Orman show this weekend and she spoke to a caller who had over 100k in credit card debt( one card with a large balance had a 29% APR) and wanted to know the best way for her to to pay it off. I thought her response to this person was interesting.

Suze Orman said if ones CC debt is higher than their gross yearly income and you have no assets to off set this debt you are essentially bankrupt, and told the caller that was her best option.

I do not necessarily agree...just posting what I heard her say.

Message Edited by plasticman on 08-10-2009 11:37 AM

[akindofmagic]

Wow, 100k in CC debt?  Did the caller give any indication of annual income?  Was this for his/her business? 

If I had this type of CC debt at my income level (55k - 60K per annum), I would opt for bankrupty.  The APR alone equals salary to some. 

[Anonymous]

I agreed with Suze Orman..If her balance is 100K with a 29% APR..Holy Crap! It will take her many many many many many years to pay if off or she even may NEVER be able to pay it off if she pays only minimum amount. Bankruptcy is the best option..

By the way, How do you get that much debt?

I would never charge or owe anything over $2k on any credit card account. It's SCARY!

Message Edited by CreditCard101 on 08-10-2009 12:20 PM

[plasticman]

This woman was a long time nurse and had a good annual income just above 80k.

[creditwherecreditisdue]

Suze Orman recommends BK in about 1 of 100,000 cases. If she says you are BK you are BK.

The rule of thumb expressed is about right. As far as the individual case is concerned it is hopeless. It is time to say "when".

[plasticman]

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@Anonymous wrote:

I agreed with Suze Orman..If her balance is 100K with a 29% APR..Holy Crap! It will take her many many many many many years to pay if off or she even may NEVER be able to pay it off if she pays only minimum amount. Bankruptcy is the best option..

By the way, How do you get that much debt?

I would never charge or owe anything over $2k on any credit card account. It's SCARY!

Message Edited by CreditCard101 on 08-10-2009 12:20 PM

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It thought in this particular case she was right.

More to the point I found Suze Ormans' personal "test" to file interesting. 

[Anonymous]

Suze Orman usually right about 99% most of the time. She's an expert in personal financial stuff. Her job is really easy just tell people whether you are approved or not approved hahah..

[plasticman]

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@creditwherecreditisdue wrote:

Suze Orman recommends BK in about 1 of 100,000 cases. If she says you are BK you are BK.

The rule of thumb expressed is about right. As far as the individual case is concerned it is hopeless. It is time to say "when".

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I just learned something new.

Apparently this is true. I had no idea what was the recommended threshold was for filing based on the amount of ones CC debt and no assets.

Message Edited by plasticman on 08-10-2009 12:49 PM

[mystikal1]

Is that the show where she was 150k in CC debt min payments of 3-3.5k a month and only brought home about 4-5k net a month. That is why she said to go BK.

[akindofmagic]

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@mystikal1 wrote:
Is that the show where she was 150k in CC debt min payments of 3-3.5k a month and only brought home about 4-5k net a month. That is why she said to go BK.

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OMG - I cannot even conceive of it!!