Suze Orman’s Latest Advice: Pay Only The Minimum On Your Credit Cards

Financial guru Suze Orman has her own share of fans and critics alike.  However, her latest advice does sound a bit too much like it’s designed to bring out the ire of most other financial advisors.

While she used to advice credit card holders who keep large balances to try and pay down their debts as much as they can, she has now changed her tune.  According to Suze, it is now a priority to put your money in an emergency cash fund instead of using it to pay off your credit card debt.

Her advice about your credit card bills?  Pay only the minimum balance.  With the uncertainty of the current financial environment, Suze feels that everyone should realign their priorities towards preparing for the worst and the best way to ensure your readiness is to have a minimum eights months of spending money tucked away somewhere.

Credit card companies are about to fold.  At least, that is Suze’s theory.   Even if they don’t, she predicts more and more credit card companies will close customers’ accounts, reduce their credit limits or pretty much make their credit cards undependable within  the near future.  When they do, you’ll lose your sources of emergency spending in a heartbeat, leaving you out in the cold in case of an unforeseen exigency.

Many financial experts are up in arms over Suze’s new pronouncement.  Personally, I think the whole advice is a recipe for disaster.  She’s basically telling people to put their cash in accounts that can earn 2% interest, all while allowing their credit card balances to balloon by up to 20%.  Still, only the future knows what the future will bring.  Think long and hard before following advice, even if it is from such a well-known expert as Suze.