Financial experts are making changes in their advice about saving, spending and dealing with debt.
Suze Orman is urging people to pay the minimum on their credit cards and save some cash. This is an about face to the advice she was giving before. Now Suze is telling people as part of her recession information to just pay the minimum.
Say what? Contrary to every bit of advice that anyone has about credit cards, Ms. Orman is recommending to people who are in financial straits to pay just the minimum payment, and do not use their credit cards any longer. This way there is still a line of credit if necessary and the money that is in savings can be used to pay bills, if the person is unemployed or underemployed.
Paying only the minimum does not get you out of debt any faster but does allow you to keep your head above water.
Making only the minimum payment seems silly and keeps you in debt, but if you are using the money to pay off other necessities, prioritizing your debt, then there is a chance to keep your credit card accounts. Paying them off, might mean that your credit limits will be reduced.
Suze is the only financial advisor who is giving this advice openly. Many will say pay what is necessary such as mortgage or rent and utilities, etc. Paying the minimum amount keeps people in debt and the credit card companies in business.
