'The government's not going to save them': Suze Orman warned of a looming financial 'pandemic' — says Americans have no one else to rely on. Here's how you can prepare

Moneywise
'The government's not going to save them': Suze Orman warned of a looming financial 'pandemic' — says Americans have no one else to rely on. Here's how you can prepare
'The government's not going to save them': Suze Orman warned of a looming financial 'pandemic' — says Americans have no one else to rely on. Here's how you can prepare

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The U.S. may have avoided catapulting into a deep recession— as many economic pundits prophesied would happen — but climbing costs have still left plenty of Americans plagued with debt.

And finance personality Suze Orman is raising the alarm. On an episode of Who’s Talking to Chris Wallace? on Max, hosted by the eponymous CNN anchor, Orman said the country is now living through a financial “pandemic.”

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Wallace mentions that credit card debt eclipsed the $1 trillion mark for the first time ever this year, with household debt reaching record highs.

But if Americans are looking for someone to bail them out this time, Orman says they only have themselves to count on.

“The government's not going to save them. The economy's not going to save them. They're gonna have to be their own financial vaccine, so to speak,” she continues.

The author and podcast host believes that if you want to continue going out and having fun, or get yourself out of a paycheck-to-paycheck cycle, you’re going to have to save yourself.

Americans have spent away their pandemic savings

The money maven went on to explain that during the first couple years of the COVID-19 pandemic, Americans were hoarding away some major savings.

Stimulus checks were bringing extra income, student loan repayments were on pause and isolation measures ensured folks saved on their work commute and coffees and spent less on things like travel and dining out.

However, since then, 80% of Americans have run out of their extra savings— and now have less cash on hand than they did when the pandemic began.

If you have a mountain of debt to tackle, you may want to consider consolidating your debt with Credible* to speed up the process and save money.

Credible makes it easy to streamline your debt repayment at an affordable rate. Their online marketplace of vetted lenders provides personalized debt consolidation loan offers based on your needs, allowing you to pay off your debt more efficiently at a fixed rate without juggling multiple bills.*

All you need to do is provide some information about yourself*, and Credible will present you with a list of loan options to start tackling your debt.

You can cut down on other essential monthly expenses like auto insurance too with BestMoney.com*.

BestMoney.com is a site dedicated to helping you compare the best financial products in your area. Just fill in in a bit of information about yourself and BestMoney.com will provide you with a list of the best and most affordable car insurance options near you.* This way, you can cut down on this monthly bill and have more room for savings.

You can also start making smart changes to your spending habits that will snowball into a significant impact on your savings goals.

With Acorns* — an automated investing app — the leftover change from your everyday purchases becomes an investment in your future.

When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio.*

Setting up Acorns takes less than five minutes — there are no hidden costs or transaction fees, and you can start saving automatically for just $3 a month.

Read more: Rich young Americans have lost confidence in the stock market — and are betting on these 3 assets instead. Get in now for strong long-term tailwinds

You need to make your own “financial vaccine”

Orman fears that very soon, Americans will be unable to pay off their credit card balances and bankruptcies will go up — unless folks figure out how to get their finances under control soon.

Take a good look at your spending habits and consider keeping track of your monthly income and expenses with a spreadsheet or notebook. If you’re making a budget, it’s crucial that you stick to it. And if your goal is increasing your savings, you want an account that’s going to give you the maximum return.

By opting for a high-yield savings account*, you can make a significant impact on your next egg, with a higher interest rate than the national average of 0.4% APY.

To determine which account is right for you, check out our guide to the Best High-Yield Savings Accounts of 2024* to see which option is right for your savings to grow.

You might also find it helpful to chat with a financial advisor*, who can examine your finances and help you get on track with your savings goals.

Zoe Financial* is a modern wealth platform offering you access to curated fiduciaries, financial advisors, and financial planners — all of whom are professionally vetted.

They recognize the uniqueness of each person behind each and every bank account and help you seamlessly find the right guidance*, depending on your specific financial goals

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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