I’m not a huge follower of Suze Orman, but I’ve seen a few of her talks on television, and when she offered her 2009 Action Plan as a free e-book on Oprah.com, I downloaded and read the whole thing, so I know a little bit of what she is about. I recall being very used to hearing her say that a person who is carrying credit card debt has no business putting money into savings because they would save more by paying the higher interest debt off.
But things change…
A posting on her website says:
I want you to only pay the minimum due on your credit card balance and instead make it your top priority to build as much of an emergency cash fund as you can.
Let me tell you why I am now telling you to do this. With rising unemployment, having a big emergency cash fund is vital. The sad reality is that the credit card industry is taking actions to protect themselves with no regard to your needs or how good you have been in paying your bills on time. The problem is that most credit card companies are either reducing your credit limits, revoking your credit cards all together, raising your interest rates and are even paying you to close down your account.
You can read the rest by clicking HERE.
I appreciate her advice on this matter, as I think it is a realistic shift that alerts the consumer to the what is really going on out in the world.
What do you think? Are you surprised?