Are you in need of rescue from the recession? This week Suze Orman will appear on Oprah and she will be giving her five step plan on a recession rescue. Apparently Suze will also be giving advice that you never thought you would hear.
Well I never thought she would tell people to have credit cards but she tells them to maintain a good FICO score. To have a good FICO score one would need to have debt, be paying on debt and creating new debt. To an extent, maintaining a FICO score is like a gerbal running in a wheel, it never stops.
I’ll be tuning in because so many dislike her financial advice but women flock to see her and buy every book she releases. To be completely honest i’m ready for her to flat out say she’s been wrong about telling people to keep debt. I want her to show people how to get out of debt and remind people about how true wealth starts and ends with money and not credit cards, auto loans and mortgage loans.
So if you are not busy Thursday tune into the Oprah show and lets see what Suze Orman has to say about our current recession. Lets hope she tells people to get out of debt and build up a huge emergency fund.
Thanks for the heads up. I’ll be checking it out.
Not to denegrate you or your mentor, Dave Ramsey, but you can have an excellent credit score and be debt free. My FICO is 827. I have a reasonable mortgage (I qualify for twice what I borrowed), no car loan, and no credit card debt. I don’t have a big screen TV, the latest fashions, or an Ipod. But I do have security. Heck, I am Dave Ramsey (or at least that’s how I operate).
I use my credit cards, both personal and business, almost daily. The trick is to buy the things you need, not the things you want, and then pay them off when the bill comes in. Of course this takes self control. I, for one, won’t let a little piece of plastic control me, rather I control it.
I think you are going about it the right way for you and I admire that. I think anyone can be successful with or without credit cards and other consumer debt vehicles if they control their spending.
I rarely agree with Orman, but I did like the part about her suggesting to save 50% of your income. Ths 50% plan is a great one if you are just starting out. Think about it, for every year you save half your salary you are creating one year of freedom from that salary. Hard to pull off once you’re stuck with a big mortgage, car payments, etc, so I always tell young people to try this when they are starting a new career.
Yes, living on half of ones income is the way to go. So if your mortgage is a quarter of your take home pay and you can save have of your income, you are really doing well. Thanks for your comment, I think you are right on target and so was Suze when she said that.