Tuesday, December 15, 2009

Suze Orman's Advice: Pay With Cash

Suze Orman, a highly respected money guru, has recently called on Americans to start paying for purchases with cash.

She was heard saying on CNBC, "Let’s go back to the times when you literally paid cash for everything. That’s right. Cash. Stop using your credit cards altogether."

I am definitely in favor of Suze Orman's "Back to Cash" movement. It is high time we, as a nation, wean themselves off debt and live within our means.

In any case, credit card companies aren't looking out for its customers. They are adopting more aggressive tactics to boost their profits, with stricter credit-card legislation looming.

When it comes to raising interest rates, our credit scores and history of timely payments count for little. If you have low balances or periods of inactivity, your account could also be closed.

Since credit card companies are treating us like dirt, we might as well say goodbye to credit cards once and for all. Heck, just pay with cash. No more identity theft or hidden/unexpected fees to worry about.

The initial adjustment may be painful but once you start planning a household budget, your expenses will be easier to control.


youngandthrifty said...

I love Suze Orman, she's great and very to the point. I personally like using my credit card because I get points/ rewards when I use it. I think that credit cards are okay, as long as you make sure you pay off the balance every month. Giving away 19.99% of your money every month to the credit card companies is definitely not a good way to go, I agree!

Ryan @ Planting Dollars said...

I think for about 99% of people this is great advice since they tend to spend more with their credit cards and overextend themselves. However, if you play it right, like the 1%, making money is pretty easy with credit cards.