Olde Hornet
Well-Known Member
‘You are asking for so much trouble': Suze Orman says don't do these 5 things if you want to pay off debt
The finance icon doesn't mince words when it comes to debt.
1. Don't ever miss a student loan payment
A May report from the Federal Reserve showed almost 60% of student borrowers made zero payments on their federal loans between August 2020 through December 2021.Struggling with student loan debt? Whatever you do, don't just throw up your hands and stop paying.
"Make paying back your student loan the very first bill you pay," Orman says on her Facebook page. "It is more important that you make your student loan payments on time each month than any other bill."
She has called student loan debt "the most dangerous debt you can ever have" because you can't erase it through bankruptcy.
2. Don't ever co-sign a loan
When a friend or family member in need asks you to co-sign a loan, Orman says the only correct response is to turn them down.As she puts it: "Don’t be afraid to say 'no to others and say 'yes' to yourself."
When you co-sign a loan, you become legally responsible for paying back the money. Life is unpredictable, and if anything happens to prevent the borrower from repaying the loan, you’ll be on the hook to make the payments.
Plus, if the borrower is so much as late on a few payments, your credit score can take a hit.