Suze Orman and the New Rules of Credit Card Debt

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Veronica, I know what you are going through. I had the same problem. My interest quickly became more than my principal due. Bankruptcy is not a good option. I was keeping up with my bills but the credit card companies are the ones who put me in this position because they started raising my interest rates, so my balances went up and then they started to reduce my credit line. Luckily I found out about how to deal with these credit card companies. Although, I didn't feel right about it at first, they pushed me into a corner. Talk to a consumer defense attorney. My attorney, robert hinsley, helped me out of this mess. Don't file for bankruptcy, there is definitely a much better way.

Anne of TX 5:40PM October 18, 2010

Look I've been around the block a few times; I've made a lot of mistakes in the process. I'm 56 years old and have literaly spent everything I've made and don't know what to do now. I have a 16 year old son who doesn't have a savings to help with college and I barely make ends meet so I don't see any hope of being able to help him go to college. I'm certain he will get an acadamic scholarship. As for myself I'm behind about 25 years you see I'm a recovering addict and have been clean and sober for 16 years but I just can't seem to get over this hump, his dad is an addict so I don't get support from him. Please help me understand what I need to do to get a start on rebuilding my credit and being able to do something for my son other than survive from day to day. He's a great kid I want to give him a much deserved vacation, I want to show him there is hope and that I haven't turned my life around to live on the edge. That's what I did for half of my life! Please somebody help me understand what I need to do; my credit is bad but I haven't aquired any new or unneccessary debts. Help me if you can.

Marti Kemp of KS 2:57AM July 04, 2010

Suze Orman will be a guest today, March 25th 2010, on The Bob Rivers Show at 7:20am PT. Tune in to 102.5 KZOk Seattle or log on to www.bobrivers.com for the live streaming video.

Bob Rivers of WA 9:25AM March 25, 2010

Is there a limit on the amount of interest that can charged to a credit card debt that I have been unable to pay? I lost my job and cannot pay my credit card bill with capital one. I have not paid the bill for over 7 months now and the interest continues to accure at 26%. When I go back to work I'd like to pay off all of my debts but with the interest continuously accuring, my only option will be bankrupcy. what are the normal procedures for a credit card debt?
Please advise.

veronica of CA 9:04PM March 24, 2010

You were speaking about credit Unions and credit Cards on a talk show that aired on Sunday, Feb.28th. you offered a web site that you could find more info on credit Unions. I missed the web address and would love to know what that was.

Jon esielionis of IL 2:31PM February 28, 2010

Hi
I recently was sent a letter that my citicard will be closed and for no other reason then they are no longer offering this low rate card, etc. That it is not because of any information regarding my individual account or credit standing. what do I do. Should I cancel it myself? This will effect my credit and that is not acceptable. What advise do you have?
Thank You

Lori Mclaughlin of AZ 8:47PM January 22, 2010

Hi Suze,
I Love your show. I watched you almost every Saturday night.Can you please answer this qestion for me.
My husband is unemployed,I'm the only one person is working for over two year,We lost our house for Short sale 2008.We have No Saving.
We just got seved a summons, sue by credit card company. I don't what to do. We only have two car that already payoff. Can their sue us for the two car? Please help us. Thank you very much.
Kay

Kay of CA 6:42PM January 12, 2010

Credit Protector plans as you have described don't make financial sense. If you are paying the minimum each month, for example, roughy half of your payment goes to the principal and half goes to finance charges. And the charge to your card will be about the same as the amount of money you would expect to be paying down your balance.
For example, let's say your mimimum monthly bill is $100. $50 goes to paying down the debt, very slowly. And $50 goes to paying interest. The credit protector plans (through Citibank, Chase Visa and more) are listed as additional charges, to your PRIME RATE (So if this is a card you took out with a balance transfer offer of 7.99% and your purchases rate is 22.99%, that 45 cents will be charged and accrue interest at 22.99%).
So, now that $50 that is paying down your debt at a low, promotional percentage rate is suddenly being cancelled by a $50 charge at a higher interest rate. And your debt no longer slowly goes down. And if you call to cancel this, they might forget [as they did with me]. Also, these charges, although charged as NEW charges at the PRIME rate each month won't appear on your online activity. Which is important because most cards try very hard to convince you to use online statements. Because they hide it.
You're better off SAVING $50 a month that would cover your minimum payment for several months just in case than letting the credit card companies con you into a bogus plan that just plain keeps you in debt. It's a scam.

Juliah of CA 2:22PM January 11, 2010

Hi Suzie,
From time to time I get calls from my credit card offering .45 per $100 for credit protection which will stop monthly payments for 6 months if there is a loss of job,illess ect. I owe $11,000 and have 13,000 in savings my job is ending in Dec 2010 . I'll receive a 6 month severance package which will include PTO. Do you recommend that I pay the extra for this credit protection?

Phyllis of NC 10:19AM December 11, 2009

Hi Suze,
I'm paying off all my credit cards next week before the high interest rates and credit line decrease kicks in February 2010. My question to you is when I pay off the credit cards should I then call and cancel them with the credit card companies? I would like to keep at least 1 for an emergency but I really want to close the other accounts out. Will this destroy my good credit? What is my next step after paying off the credit cards?

Dianna McMillian of GA 9:21AM December 10, 2009