Jan 21 2009
Suze Orman Managing Debt
Getting into debt is a horrible feeling where you feel like you are not making any progress. It can be stressful and soul destroying. Many people spend too much at Christmas time and as a result have to pay for it afterwards. It is easy to over spend at Christmas time especially if you have children who demand that you buy them a particular toy. After Christmas you are left with debt piling up and the letter’s start dropping through the letter box. What is the answer?
Well, fortunately Suze Orman has some great advice that can help keep you out of debt if you apply it to your life. A woman wrote to Suze Orman saying that she owed $20,000 on her credit cards, $165,000 mortgage, car payments and a home equity loan and lives life to the fullest. The lady who is struggling to pay off debts manages to take her kids to all the best water parks, museums, the YMCA and Disneyland frequently. The lady is of the belief that being in the red doesn’t matter and carries on overspending.
Whilst debt in itself isn’t bad explains Suze Orman to this lady. It is the manner in how you cope with it that’s important. Although on the surface it looks like this lady cares about her kids if she ignores the debt and carries on spending the way she is then her kids will eventually suffer the consequences.
Whilst this might seem harsh, if you over spend at Christmas and carry on getting into debt then your children will suffer eventually. As Suze Orman explained to the lady if she cares about her kids then she also has to care about how she spends her money. The example this lady is teaching her kids is wrong as they will think that money doesn’t matter and that over spending is all right.
Orman makes the point that this mother will not be able to afford her children’s education and will probably rely on her children in later life when she has no retirement money. It makes sense then that over spending is wrong and looked upon as bad debt versus good debt.
Visit Mickie at either of her Today.com blogs, The Osbourne’s or her blog about the Performing Arts.
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