Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
why is it so amazing that she recommended someone pay only the minimum? its an unusual recommendation but it probably made sense and its not even worth reading the details just because my god one of the modern financial talking heads didnt just preach to spend every penny paying off debt pay off debt pay off debt debt is evil debt is evil. it seems like even simple financial concepts have been simplified to single digit IQ levels.
why is it so amazing that she recommended someone pay only the minimum? its an unusual recommendation but it probably made sense and its not even worth reading the details just because my god one of the modern financial talking heads didnt just preach to spend every penny paying off debt pay off debt pay off debt debt is evil debt is evil. it seems like even simple financial concepts have been simplified to single digit IQ levels.
High IQ people typically don't need help with finance.
This.
And the fact that if the woman paid off the debt faster, her ex-husband got off scott-free by not having to pay any of the joint debt they had jointly accumulated.
See, he had to pay off the car loan first, then pay 1/2 the accumulated remains of the credit card debt they jointly accrued. If she paid it all off, he had to pay nothing then. WHY should she get saddled with all the debt repayment?
ADn she was paying out like $3500/month while her income was only like $3200/month, so she was behind already. she wanted the CC debt gone so she'd not have to deal with it,but couldn't really afford it.
Yes, It's joint debt. It should be paid off together.
The problem with Suze Orman is that she always generalizes, as if a boilerplate will apply to every situation.
I'm a perfect example of this. If I had followed her advice, I'd wait to buy a house when I have a 20% down payment.
Instead, I bought a condo in the pricey SF Bay Area, with a FHA loan, with only 3.5% down, back in early 2010. Fast forward 4 years, I sell it for a 300k profit and buy a dream house. Had I listened to Suze's advice, I wouldn't have bought the condo back in 2010. I would've tried to save the 20%. However, with the additional money I would have to pay with rent, the lack of a mortgage deduction and the rapidly increasing housing prices, I would've been completely priced out of the market, probably with not much more in my savings account than I have today.
you got lucky timing the market. there will always be luck involved. there were also many people who bought homes in 2006 and didn't have the money to pay their mortgage payments when their interest only (or worse, negative amortization) loans were up in 2011 so they had to sell for a loss, etc.
but not that i want to defend suze because she certainly makes her share of mistakes too.
and high achieving people definitely do know a little bit more about finance and wealth management than poor people. they also as a group know more about politics, 401k, tax laws, etc.
you got lucky timing the market. there will always be luck involved. there were also many people who bought homes in 2006 and didn't have the money to pay their mortgage payments when their interest only (or worse, negative amortization) loans were up in 2011 so they had to sell for a loss, etc.
but not that i want to defend suze because she certainly makes her share of mistakes too.
and high achieving people definitely do know a little bit more about finance and wealth management than poor people. they also as a group know more about politics, 401k, tax laws, etc.
Sure, luck played a little role in it. However, in understanding the market in the Silicon Valley, you'd know that it is cyclical, full of boom and bust cycles. Did I know that I was at the bottom? No. Did I know how quickly it would go up? No. However, I did know that it had already dropped a lot and that long-term it would be a good investment opportunity.
By the way, I was also smart enough to know that I should lock in a low fixed rate mortgage. As I was in a FHA loan, I got a good, but not great rate. In a couple years, I refinanced, once I had accumulated equity, to get rid of the PMI and lock in a lower rate.
My point here is that while luck certainly played a role, I was savvy enough to work it to my advantage.
I think Suze provides a good reference for someone who knows absolutely nothing about Finance. It gives people some guard rails, if you will. But, there are tons of other examples where it also makes sense to figure out what makes more sense for your specific situation.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.