This week, I decided to feature the opinion of someone who has been in the financial industry for almost 30 years and is well-known to tv viewers and book readers. Suze Orman has a weekly show on CNBC and she has also written several books on personal finance.
Last weekend, Ms. Orman featured a segment called "Suze Orman's Debt Loyalty List."
She listed, in descending order, how she feels certain debts should be paid off.
Here is the list:
2) Student Loan
3) Personal Loan
5) Car Loan
6) Credit Cards
Of the credit cards, Suze said, "Credit card debt is unsecured debt." That means, the banks and credit card companies CANNOT repossess anything that you own because you are behind on your card payment. Also, they cannot seize your accounts and rarely does it get to the point where they garnish your wages.
Personally, I address this list because I want you to see that the credit card companies are
NOT the bullies that they pretend to be. They do NOT have any more power over you than you allow them to have.
Think of it this way - with the new credit card legislation that the president has signed into law and all that you are learning from this blog, YOU are the one with the POWER, not the banks and not the credit card companies.
Good job, Suze! Good job, Readers!! Stay tuned.