Don't: Fall for teaser and variable rates.
Some credit card companies lure you in with a rate of 0 percent but raise it to 18 percent after the initial promotional period. Adjustable-rate mortgages that started at 2 percent or lower in 2005 have reset at much higher rates, sending thousands of people into foreclosure. And that private college loan that started at 10 percent? It could climb to 15 percent or higher if it's tied to an index that rises. The bottom line: If the interest rate isn't permanent, you could get taken for a ride.
Do: Stick with a 30-year fixed-rate home mortgage
...(average is currently 5 percent), avoid credit card promotions altogether, and, as much as possible, steer clear of private college loans—again, Stafford and PLUS loans are the way to go.
Read more: http://www.oprah.com/money/Making-Deals-Suze-Orman-Financial-Advice/2#ixzz2sEHfj0kR
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
