'The most dangerous debt you can ever have': Suze Orman says avoid these 3 financial missteps if you are trying to climb out of debt
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Best-selling personal finance author and TV personality Suze Orman has been inspiring Americans for decades to make better money moves and avoid serious financial mistakes.
She's been as busy as ever since the pandemic hit, offering consumers advice on how to weather the hard economic times as prices and interest rates stay stubbornly high.
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In a 2022 interview with CNN about what to do to prepare for a recession, Orman got straight to the point about debt.
“All of you, every one of you, should obviously get out of debt now."
Orman will also be the first to tell you that what you shouldn't do with your money may be even more important than what you do with it.
Here are three of her classic tips for what not to do when you’re dealing with debt.
Don’t ever skip your student loan payment
Whatever you do, don't just throw up your hands and stop paying, Suze Orman said during a podcast episode last year as she called out student loan debt as "the most dangerous debt you can ever have because you can't erase it through bankruptcy.”
"It is more important that you make your student loan payments on time each month than any other bill," said Orman.
With Credible*, refinancing your student loans becomes a straightforward process. This enables you to lower your monthly payments, pay less interest and expedite your debt repayments.
Credibles online platform can help you compare and choose from a variety of refinancing options,* making it easier to manage your monthly student loan payments. By securing a lower interest rate through refinancing, you could accelerate your loan repayment* and substantially save on interest.
Don’t retire owing money on your home
A recent survey from mortgage banker American Financing found that 44% of Americans in their 60s and 70s are still paying off a mortgage. And 17% said they don’t expect to ever pay it off.
Orman urges people to go into retirement mortgage-free, for two reasons: to stretch their retirement savings, and to rid themselves of debt — an albatross that affects even mental health. “If you’re going to stay living in that house for the rest of your life, pay off that mortgage as soon as you possibly can,” Orman told CNBC in 2018.
Read more: Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here's how
If you’re looking to enter the real estate market without incurring mortgage debt, look no further than Arrived.* Arrived is an online platform that allows you to invest in shares of rental or vacation properties, starting with as little as $100.*
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Don’t let high-interest debt linger
"Debt is bondage,” Orman once told CNBC. "You will never, ever, ever have financial freedom if you have debt."
She warns that big problems can happen when you have to reach for your credit cards to cover unexpected expenses.
The longer you put off paying down your credit card balances, the more money you lose, and you can easily wind up paying for your purchases three or four times over.
Consider reaching out to a financial advisor with an expertise in debt and budget management. That way you don’t need to face this challenge alone.
Zoe Financial is an online platform that simplifies the process of finding a financial advisor you can trust.* They match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience and price
A qualified financial advisor can help you put together a plan to tackle your debt and start building real wealth for the future.*
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
