Suze Orman Fan Club Blog Community

Suze’s back and here we go!

Opening Remarks:
Let’s pay attention this week to the Student Loan crisis!  Basically,the problem is that college is so expensive, loan debt accumulates with higher interest rates, and students cannot even eliminate these loans through bankruptcy.  You wind up paying back the loans for the rest of your life.  Congress: get involved and put a stop to this viscous cycle!

One on one:
Missy is a woman who is paying back student loans and the loans are also under her parents’ name.  Missy wants to get her parents’ name off the loan since it is not their responsibility.  Suze says that this is an impossibility; unless, Missy use another loan to pay off the student loans (although Missy is ineligible for getting a loan from somewhere else).

Now you know:
Apparently, student loans can garnish up to 15% of your paycheck.  This is the last resort if you are unable to make payments.  This is a very serious issue and you should really be careful when getting student loans.

Phone calls:
Tony
He is unsure about what to do with his equity when he has a son who is heading to school.  He wants to allow his son to get the best financial aid but is not sure what financial aid agencies look at.  Bottom line: don’t even think about putting your equity into an annuity in order to get your children better financial aid.  Suze drops a plug for www.finaid.org for further information.

Linda
Deep in credit card debt, but is living a lie (she lives a luxurious lifestyle).  Basic advice is to get honest with yourself and with your friends!

Margaret
Wants to take her money out of IRAs and put into a Money Market.  Suze screams because the woman has 100% of her money in the IRA.  DIVERSIFY, girlfriend!  AND!  Her assets are down 40%!!!  Suze tells Margaret to ditch the financial advisor and start doing things with her money for herself.  After the call, Suze tells us: “Did you hear that?  40%!  And she won’t ditch the advisor because why?  She is worried about hurting his feelings?  Give me a break.  You need to be careful with your money, people.”

Can I afford it?:
*David- $359 for Kindle (gift)- DENIED
*Roni- $5,000 for Drapery Business- DENIED
*Joseph- $7,000 for trip to Rome- APPROVED
*Nancy- $320 / quarter for son’s gym class- APPROVED
*Anne- $5,000 for bathtub- APPROVED

Phone calls:
Matt
He is worried about his wife’s attitude with money.  Suze asks Matt to reassess how much he actually “likes” his wife.

Melissa
Selling her condo and moving in with her fiance.  She is worried that her fiance is being stingy because he doesn’t want to put her name on the deed; when he has paid for it all by himself.  Suze tells her to chill out because he is not being stingy.

Email:
In case anyone is interested, Lou is in a relationship with someone named Lillian.  They have been together for two years and he is waiting to earn more money before he proposes to her.  Yay for being financially responsible, Lou.

Jessica, writes an email to ask about 0% credit cards.  Suze warns that while it is a smart idea to use this as a means of investing, you should always be able to pay back the debt in full in case anything with the rate changes.

Closing remarks:
Suze hates two things: the first was people that lie.  I do not remember the second one.  If someone could please add it to the comments, that would be great.   Until next week!

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