20 Jan Is Suze Orman The Light Of Your Financial Future?
Darling Suze has been held out as the Pied Piper for the masses looking for financial advice. As with anything else you should check out the source of any advice before you take it.
Forbes Magazine reported that Suze made most of her money from selling insurance in 1998 and not from financial planning as she led people to believe. I too used to listen and watch Suze Orman. She is a great entertainer, a great motivator and an inspiration to many. These qualities can be dangerous if not tempered by truth and accountability.
Suze like many others have been spreading mistruths about bankruptcy. Suze is helping to spread the fear that bankruptcy may no longer be option for those who are at the end of their financial road looking for help. Suze states that bankruptcy is harder to file for now when the truth is overall it is not harder for someone to file for relief. Suze writes that if you file a Chapter 13 that you must pay part of your debts back and this too is not necessarily true. On April 11, 2005 Suze stated on Court TV that people would no longer be able to file for bankruptcy. Wrong! Suze also indicated that if you don’t care about your credit than go ahead it is alright to file bankruptcy.
What she does not tell you is that bankruptcy is like a defibrillator for your financial life. Bankruptcy can actually help bring your debt to income ratio back into alignment as bankruptcy will rid you of certain debts. I have emailed her on several occasions to inquire about the misstatements regarding bankruptcy but as of the date of this article she has never replied.
Suze wrote in one of her books that she coined the phrase good debt/bad debt back in 1999. Chuck Jaffe on investors.com shined the light on another mistruth as the good debt/bad debt phrase was used long before Suze claimed to have coined the phrase. Time Magazine contributor Anita Hamilton wrote an article expressing how Suze and others have played upon the emotions of women and how they are misleading women into alleged empowerment.
Have you ever noticed that there is hardly ever a conversation with Suze that does not include a discussion about FICO. Suze leads people to believe that without her help credit repair is very difficult to do. This type of misleading behavior resulted in Suze and her credit repair kit to be named in a class action suit against FICO for violating the Credit Repair Organization Act.
FICO is not as cut and dry as people might think. Motley Fool has a wonderful article about FICO Scores and why it varies from agency to agency. Motley Fool also has a wonderful resource center on how you can take control of your finances and debt without paying for any products.
Another great resource is Bankrate where you will find all kinds of financial calculators and advice. Last but not least the Federal Trade Commission has a wonderful site that will give you powerful tools to take charge of your financial future.
Is Suze Orman all bad? Absolutely not. I think she has and incredible gift of promoting herself and delivering kernels of common sense in way that people can understand. Keep in mind that absolute power corrupts absolutely. Don’t give Suze or anyone else absolute power over your life. The internet can provide all kinds of information for free!
Remember that knowledge is power and you can regain financial control.
Written by Kansas City Bankruptcy Lawyer, Rachel Lynn Foley.