topic Re: Suze Orman said... in Credit Cards

Suze Orman said...

Anonymous — Mon, 10 Aug 2009 18:37:55 GMT

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

Re: Suze Orman said...

akindofmagic — Mon, 10 Aug 2009 19:15:43 GMT

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.

Re: Suze Orman said...

Anonymous — Mon, 10 Aug 2009 19:20:16 GMT

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

Re: Suze Orman said...

Anonymous — Mon, 10 Aug 2009 19:17:43 GMT

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

Re: Suze Orman said...

Anonymous — Mon, 10 Aug 2009 19:22:39 GMT

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".

Re: Suze Orman said...

Anonymous — Mon, 10 Aug 2009 19:25:26 GMT

@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

It thought in this particular case she was right.

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

Re: Suze Orman said...

Anonymous — Mon, 10 Aug 2009 19:30:49 GMT

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..

Re: Suze Orman said...

Anonymous — Mon, 10 Aug 2009 19:49:34 GMT

@Anonymous 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".

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

Re: Suze Orman said...

mystikal1 — Mon, 10 Aug 2009 20:18:33 GMT

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.

Re: Suze Orman said...

akindofmagic — Mon, 10 Aug 2009 20:21:06 GMT

@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.

OMG - I cannot even conceive of it!!

Re: Suze Orman said...

Anonymous — Mon, 10 Aug 2009 20:30:19 GMT

I just saw the show this weekend and cannot remember the exact amount of the CC debt she was trying to carry. However, if it was 150k, according to the Suze Orman "test", then this particular woman was bankrupt twice over!

Message Edited by plasticman on 08-10-2009 01:30 PM

Re: Suze Orman said...

Anonymous — Mon, 10 Aug 2009 21:03:41 GMT

Re: Suze Orman said...

bobtail — Mon, 10 Aug 2009 21:19:17 GMT

I watched this show. Suzie, was equally concerned with the quality of life this nurse was having. Being a responsible person who had always paid her debt, she was becoming physically ill over her current financial picture. The worry had consumed her 24/7, and her health was suffering. Suzie's, question to her, "Where would your family be, if something happened to you"? With her debt and health, I think, Suzie, was correct telling her to claim bankruptcy. Explaining, that is what the law is for! No amount of debt is worth your life.

On the air, they did not go into reason's for the debt. Suzie, was satisfied the circumstance's were beyond her control.

Re: Suze Orman said...

Anonymous — Mon, 10 Aug 2009 21:27:21 GMT

@bobtail wrote:
I watched this show. Suzie, was equally concerned with the quality of life this nurse was having. Being a responsible person who had always paid her debt, she was becoming physically ill over her current financial picture. The worry had consumed her 24/7, and her health was suffering. Suzie's, question to her, "Where would your family be, if something happened to you"? With her debt and health, I think, Suzie, was correct telling her to claim bankruptcy. Explaining, that is what the law is for! No amount of debt is worth your life.

On the air, they did not go into reason's for the debt. Suzie, was satisfied the circumstance's were beyond her control.

bobtail,

Correct me if I am wrong, but I thought I heard this particular had a home in Hawaii and was renting on the west coast somewhere and said much of the debt was incurred while trying to sell her Hawaii house after she had moved. When her Hawaian home sold for a significant loss she could not pay the CC debt back as she had planned.

Re: Suze Orman said...

Anonymous — Mon, 10 Aug 2009 21:50:13 GMT

I am not sure of this ladies particular circumstances, but with the new Bankruptcy Laws, she may not be able to discharge all the debt.

Obviously I hope she gets the assistance of a qualified Bankruptcy Attorney.

Re: Suze Orman said...

bobtail — Tue, 11 Aug 2009 00:12:13 GMT

Plasticman,

Sorry, I did not catch that part. You are probably correct. I related to the health issues and the impact to her quality of life. I hope she gets the help she needs. I had a close family member loose their life over finances.

Message Edited by bobtail on 08-10-2009 05:12 PM

Re: Suze Orman said...

Anonymous — Tue, 11 Aug 2009 00:17:19 GMT

@bobtail wrote:
Plasticman,

Sorry, I did not catch that part. You are probably correct. I related to the health issues and the impact to the quality of life. I hope she gets the help she needs. I have had a close family member loose their life due to financial ruin.

I completely agree and my condolences to you and yours for such a loss. I cannot imagine how difficult such a loss would be.

Message Edited by plasticman on 08-10-2009 05:17 PM