Question: I am taking early retirement next year because it is a defined benefit and I am concerned the company might change it to a 401k. My plan is more than others at the company because it has a cost-of-living increase. I have no credit card debt, only five years left to pay off my mortgage. I am scared [that] it's not enough, but I know i can get by. I also have the opportunity to work for other companies, just not as much income, but a friendlier and honest environment. Is my plan for no debt and happy life worth it?
Suze Orman: How do you have a happy life if you quit and you're scared to death?! When operating from fear, you will ALWAYS make financial mistakes! Are you sure if they take the defined benefit away next year that you'll lose it? I don't think so! They're not going to just give it to new employees. Check it out more carefully, but as long as you're afraid to do something, it's better to do nothing than something that scares you.
Monday, February 29, 2016
Monday, February 22, 2016
Cut your credit cards but dont close the account
30% of your FICO score is made up of your debt to credit limit ratio, which essentially means how much you owe on all your credit cards in comparison to the credit limit that you have on all your cards. History only accounts for 10% of your FICO score.
So, closing down your credit cards is the worst thing you can possibly do! Once you've paid off a credit card, just cut it up, but don't close it down! This, of course, assumes you're not paying an annual charge for these credit cards. If you are, that's reason enough to close that credit card down. It makes no sense to keep any of your credit cards at department stores open.
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.
So, closing down your credit cards is the worst thing you can possibly do! Once you've paid off a credit card, just cut it up, but don't close it down! This, of course, assumes you're not paying an annual charge for these credit cards. If you are, that's reason enough to close that credit card down. It makes no sense to keep any of your credit cards at department stores open.
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.
Monday, February 15, 2016
Zero percent balance transfer can help relieve credit card debt sometimes
I have credit card debt about $15,000. Should I pay it off by taking money out of my trust or get a loan from a bank or credit union?
Suze says: "No! Don't do any of that. Why don't you just simply do a balance transfer to a credit card at a 0% interest rate for 21 months? Really start focusing on paying it off every single month. "
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.
Suze says: "No! Don't do any of that. Why don't you just simply do a balance transfer to a credit card at a 0% interest rate for 21 months? Really start focusing on paying it off every single month. "
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.
Monday, February 8, 2016
Student loan debt can be garnished from your social security money
I cannot pay my tuition and living expenses. Is there any way to lower or work off college debt? I am 58 years old.
Suze Orman: You have to understand that student loan debt does not go away. They have the legal authority to garnish your social security check.
So, you have got to get the word "can't" out of your vocabulary. You might want to think about getting a job at a non-profit organization because if you do, you then can pay back your student loan debt under the IBR method and after 10 years, it's totally forgiven. Then, at 68, if you want, you can claim full social security. No student loan payment + extra income from social security should help you a lot!
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.
Suze Orman: You have to understand that student loan debt does not go away. They have the legal authority to garnish your social security check.
So, you have got to get the word "can't" out of your vocabulary. You might want to think about getting a job at a non-profit organization because if you do, you then can pay back your student loan debt under the IBR method and after 10 years, it's totally forgiven. Then, at 68, if you want, you can claim full social security. No student loan payment + extra income from social security should help you a lot!
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.
Monday, February 1, 2016
Calculate which credit cards to pay off first
How do I determine which credit card to pay off first? Should it be the one with the least balance and work my way to all others? Facing credit card debt can be overwhelming, but I want to pay them all off.
Suze: Add up all your minimum payments that are due. Add 20% to that figure. So, let's say you owe $300 a month for the minimum payment due for all your credit cards — 20% of that is $60. You are to pay the minimum payment due this month every month from now on, even if the min. payment due next month is less. You are to add that $60 to the highest interest rate card you are paying. When that card is paid off, you take that entire amount plus that $60 and you add it to the second highest interest rate card that you are currently paying. Keep rolling down like that. In my new online course, it will show you exactly how to do it. So, make sure you download it now!
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.
Suze: Add up all your minimum payments that are due. Add 20% to that figure. So, let's say you owe $300 a month for the minimum payment due for all your credit cards — 20% of that is $60. You are to pay the minimum payment due this month every month from now on, even if the min. payment due next month is less. You are to add that $60 to the highest interest rate card you are paying. When that card is paid off, you take that entire amount plus that $60 and you add it to the second highest interest rate card that you are currently paying. Keep rolling down like that. In my new online course, it will show you exactly how to do it. So, make sure you download it now!
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.
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