Last night I watched The Oprah Winfrey Show, which featured financial guru Suze Orman. Wow, was it a scary and powerful show. All about finances and the current state of the economy, Suze laid down a firm hand for several families who appeared on the show.
One such family, a couple from Florida, who owes $90,000 in credit card debt, with no jobs. When asked if they can afford their home, they faltered with a yes and explained their rationale that it will cost us just as much to rent something as their mortgage costs (which they admit they can’t afford).They’ve been paying the minimum on more than 25 credit cards, then using the cards to pay their mortgage, food, etc. WOW!
Suze didn’t let them off easy. It was almost hard to watch. She explained that owning a home costs more than the mortgage (something she’s said before) — it’s the mortgage, insurance, lawn care, heating and cooling bills, etc. that adds up. By the end of the show, the couple realized they were going to have to sell their home and move their kids into something else.
Suze really hit home for all Americans that we spend more than we make. This is serious. It’s not a joke and people need to start living honestly, as she says. Buy only what you can afford.
Here’s a clip from the smack down:
- Recession Proof Your Life from Oprah.com
- Are You Protected Financially? Quiz from Oprah.com
- Talk about this episode