Suze Orman: Here's Why You Can't Afford Things Anymore 

When I was young the mortgage rate was high, I have seen gas prices go up and down, but I have never seen food prices escalate like this.

Very glad I've lived under my means and have no debt. That doesn't make me immune from hard times but it's one big thing off the list of things to worry about.

Pay cash and you won't need an interest rate.

Actually interest rates are normal. The problem is that they have been abnormally low for 15 years. People are addicted to cheap money and living beyond their means. Low rates have distorted the whole economy. But things will adjust as they always do. It will take time to get rid of all the dirty speculators in real estate and stocks, for example. Once demand drops, prices will moderate.

I’m old enough to remember 15% mortgages in the 80’s. I just got a credit card offer (FICO 805) of 29.9%!!!!? THIS is USURY!!!. How do banks get away with this. Most savings accounts offer less than .05 interest. Pure greed. Only 8.5% of credit card debt and 7.7% of car loans are delinquent. “ It’s time to buy”

Reminds me of the 1970s when gas prices were extremely high, long lines around the block at gas stations, inflation was out of control, and interest rates on a new home were at 18%, and that was low.

And I hope people learn that you need to save up during the good time so you can get through the bad times.

living beyond their means and borrowing money is the problem

You cannot control inflation, no matter how much you whine. Your primary control is over your income and your debt obligations. Gotta maximize income and minimize debt. Period.

I have a relative (who shall remain nameless) who used the equity in his house like an ATM to live a lavish lifestyle. Then he lost his job and the whole house of cards came crashing down. He didn’t change his spending at first but in a short time he lost everything. Eventually he lost his house to foreclosure and lived with a kind friend for over a year until he wore out his welcome . He lived off the largesse of family and friends until they (we) too said enough is enough. Did I mention that he has a wife (who at first refused to look for a job) and two children . What he has done to his family is unconscionable.

New car prices are not coming down in New Jersey. Car dealerships are charging between $2,000 and $5,000 over MSRP, depending on the model.

Thank the Federal Reserve Bank, a private bank with major banks as shareholders! And, thank your politicians for allowing this to happen, with no accountability.

Don't forget how grown children think that their parents can afford to pay their children's bills & their own bills at the same time.😭

for those who save - CD rates are very nice 5.4%

I went through a bankruptcy and had it discharged by the courts. Now I have one credit card and I don’t use it at all. I have put a lot into robinhood in etfs and stocks that get me dividends. I’m dropping pnc because they charge me 7 dollars a month in fees because my balance is not at 500 and will be using SoFi. I’m building up my emergency funds as well. Next I need to get some veggie seeds and grow an indoor fruit and veggie garden.

The reason for interest hikes is to bring inflation average low. So, yes, inflation is reason for interest hikes. Unemployment will continue for rest if 2023 n 2024, food prices will increase, rent will continue to be unaffordable, crime up, homeless rates up, drug and alcohol consumption up.

Not talked about but those in the stock market are doing well. My IRA is up 20 percent this year. I’m retired and it’s my disposable income. When we go to restaurants at least 90 percent of the people in there are elderly. We are who is keeping many restaurants afloat. It’s the one part of the economy doing ok for now

What about gas prices, still too high!

Needing a new car is what hit me recently. The pain is real, but in the US we need a car to get around. Luckily I have some dividend stocks to help cushion the blow.

And yet, Delta airlines is expecting the biggest summer travel in its history, stores, bars, resturants, cruise ships... Full....

Why save up before spending. Minimize the use of credit. All those people described in the video by the host have spending problems and they should not blame the rising interest rate.

We are spending on food gas heat

Suze, interest rates aren't even historically high. What's happening is that these corporations have been merging with each other for decades and now have monopolies on their markets and can charge anything they want.

It’s real!

I only have a mortgage and pay extra principal payments almost every month. I have no car payments, no credit card debt, etc. I have $85000

Everything is more expensive now, bottom line..costs for energy, food, insurance, health services etc is still inflated. Is there a slight leveling technically from the highest high..yes depending on where you live. The damage is done. But that seems to be a play on words with real costs, “going down” or “leveled out”…is calculated from what to what? True, now add interest rate increases on top of that..I don’t know how people are doing it. Families that have planned their finances correctly are losing their savings all around with these two realities fractured in..gosh Suzie. However, having an energy savings is a good idea and not use credit cards, but families are stressed with both realities impacting them at once.

So glad I have gotten out of the paycheck to paycheck trap. I pay cash for everything. Interest rates are what banks pay me.

To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, what are your thoughts?

I only have a debit Visa card from my checking account. I do not have any credit cards and want nothing to do with them. Credit cards can be addicting that is why so many Americans are in debt or in bankruptcy.

People spend money on Gucci shoes and something equally foolish

Get the banks 🏦 out of the equation. Then prices will be based on how much people earn and save, and not on how much they can borrow. 😳

Suzy is still full of it. 😵‍💫😵‍💫

When rates were low everyone got spoiled tapping into their homes now if they refinance and pull money out their rate will shoot to 7 percent versus 3 payment goes way up. We are all trapped it will be interesting to see what happens.

Bologna, it's a combination of inflation and rates. Prices and rates are BOTH UP dramatically. Double whammy....Eventually it will curb spending. How could it not?

Yes, but higher interest rates means better interest on CDs etc? So it helps saving Suzie. She should know better.

The only interest one should be concerned about is with their savings, not their stupid spending.

What they need to do is lower the interest rate on necessities like , mortgages, used vehicles, and healthcare while raising interests rates on credit cards, and eliminate home equity credit. People need to focus on needs and less on wants. You don’t need to remodel your house or need to buy a new car. It’s ok to buy wants if you have the cash to buy, this helps the economy. Spending on credit just causes inflation making things cost more for everyone. Live within your means!

Why not take a decent, honest look at ourself in the first place ?. We are the primary culprit in the whole eqaition. Its our wery own gullibility for ever desire more stuff like it was the imperative to our existance with no end in site. In real denomination this is greed.

Insurance rates on homeowners insurance. Mine doubled this year and When I shopped around I could not find anything any cheaper

That's only for debtors while savers and frugal spenders benefit by high interest rates.

I used my credit to buy inventory that no one is buying anymore. All my money is going straight to interest. I will need to sell my home to survive.

The upside of high interest rates is CD's are finally paying decent interest rates. A lot of retirees have their money in CD's, so it's helping old folks.

I don’t agree that inflation isn’t really a problem. Items we need such as food and shelter are outrageous, out of reach for people.

This is not about leaving below your means it about high interest rates affecting the America peoples. If interest rates goes up that effective the buying power of the peoples.Is the system is effective the people.

And that’s a whole other issue, that somebody “needs a car”. We need better public transportation so people don’t have to “need “a car.

Who raised the interest rate? Who appointed him?

Yes...these interest rates are very very tough....however when it comes to everyday products...let's use food as an example. The true inflation rate is through the roof since it started about 2 years ago. Most food/grocery prices...ARE NOT coming down...just increasing at a slower rate year over year! Far out pacing wage growth! This means like many others...we are being bamboozled by many saying inflation is not an issue like it was....when in fact it's like a stake in many hearts. With all I've said absolutely interest rates are carving even bigger holes in pocket books. Limit credit card use..do not buy a home now unless cash...do not buy a car now unless you absolutely have to. Will there be a market correction in housing? Possibly. If you need cash and own a home...you might want to sell it. Price it right. Sell it...invest your cash in conservative interest rates that will produce modest $$$ for you...rent for 1 to 2 years and then jump back in to buying a home if there is a market correction...In Florida where I live I'm not sure at this time it is best to own a home unless you can afford to own it outright. Between interest $$$...homeowners insurance $$$ and everyday wear and tear on home $$$$...I think at this time renting is way to go. Thanks for sharing.

I'm 66 and I have never had a credit card

How about you tell them to prepare for what's coming

"Denied"

No cash no money for stuff... charge it 😭.

its so nice to be back in 2008, but suzy warned us in 2007, wait a minute, what year is it ??? something doesnt seem right !!! i wanna clone a straight version of her.

People just like to overspend "you only live once" " you can't take it with you" .. and then married couples borrow money from me because I like to save😂😢😮😊😅

I disagree. Everyone can agree that literally EVERYTHING costs more - as in double. Food prices are out of control. Just daily living. It’s not just interest rates. It’s people just trying to live.

People who overextended themselves always cry foul but only after they realize their mistake. Their suffering is not a result of them being bad people, its just a consequence of poor judgement. Use it as a learning experience. Unfortunately some mistakes affect everyone because some people never learn.

You simply have to buy an older and less expensive car. Get a loan from a credit union.

Fast forward today 401k's have lost around 20% or more of their value from losses and then factor inflation you really only have about half of what you thought you had.

suze inflation will be a problem for a long time with the way we are printing money america is finished the good old days are coming to an end and so is the dollar

‘Less of a problem’… uh what?

kara and dana laurie anne please dont shame her cindy wheres shana

People need realize that saving rate is been 💩 we finally get sunthing I get 5000 a year in interest fed never kill Inflation at 5 percent

Credit cards are a big gamble for the uninformed and uneducated

I try and use my credit cards for every purchase. I always pay the full balance off, every month. I purchase discounted gift cards through my rewards. Not using your credit cards is silly. She used to sell access to your FICO score (even though you can get it for free) and say how important your score is. Well, if you don't use your credit card or have a fixed rate loan, how are you going to get a credit score. She gets me so mad. Is she selling emergency fund accounts, now? She always says a little bit if truth but puts down the viewer, so they look to her for guidance, and, she is always trying to sell something.

Wake up! Pay off all debt, stockpile food and necessities and live below your means.

???? Inflation becoming of a less of a problem

Your son, no mun, no fun. Your Dad, how sad, too bad.😂

It's impossible to have enough savings to cover a crisis for these times. It's a societal issue that needs solutions at the top level.😢 People look out for each other.

I loved Suze Orman growing up - I remember when she was on cable television and she'd answer viewer calls. My mom and I would watch her together. 20 years later, I am a Wealth Manager and Suze Orman was definitely one of my inspirations to pursue this field! I am glad she's out here still giving advice - this next generations really needs consistent advice

Listening to Suze Orman will keep you poor!

I don'f have a big income. But have no debt .so i'm okay

Lather, rinse, repeat

Joe Biden's America

You can't afford it because they make it so you can't period.

Stopped watching lui g POS for two reasons: 1) a few years ago nice generous Susie q offered poor people her own think the POS called it a debit card that would help financially strapped people a helping hand. She should have said would help het get richer 2) Coward cable networks no longer provide the year that the Susie show they are airing was made like they did for at least the first 15 years. Only a fool would use five year old financial advice to make decisions.

Extra money, stimulus? What's that? I worked straight through the plandemic.

What nonsense. Almost no one has a variable rate mortgage so increased rates has no effect. In fact since the inflation number is 33% shelter. People with a fixed rate mortgage and the 40% of American owner without a mortgage are in better shape with higher inflation because the value of their house is going up with inflation which increases their equity and net worth. That's far more for most people than the price of eggs. Credit card rates have increased so instead of paying 16% you're paying 22%. But is inflation really the problem here. You were paying 16%!!!! You're the problem. Got to buy a $75k new car but can't afford the higher rate? Tough. Buy a cheaper used car. Yeah the rates are up, but your monthly payment is far less than that $75k car was at 3%. This video interview was for stupid people.

Ah, just blame the fed, not the crazy govt spending and policies. Sure.

Rich person trying to convince the rest of us that corporate greed is not a thing 😂

Wrong. We don't pay interest. We enjoy keeping over 90% of our income. Debt free, mortgage free. Vision. Blurr vision. Talking maniac.

Do a serious budget and try not to cry!! How in the world can you save money People aren't going to survive this black hole sucking up your money.

Biden the problem

Two words : CORPORATE GREED !!!

Biggest problem is even if you make great money you buy a 450k house an then a 75k truck. You will be as broke as snyone at a lower level. Its just simple math.

Live within your means, isn't in the American vocabulary anymore. Sad

B_den commercials begging for donations SUCK He is the crook!

Suze does not understand WHY interest rates have gone up: High inflation.

opulent sundae joseph malloy scotts monday bird shit saturday

Bidenomics is why

Suze, please finally, fully retire. Long overdue.

I believe her various scams are why we can't afford things any more.

Potato wrecked economy with inflation reduction act

Dems

Bidenomics

I used to like your advice but I think you're giving out bad advice. You told these people to keep one credit card. These people you're talking to have no business even using credit. They've shown that they're incapable of using it properly. If people are in trouble with credit, they're living way above their means. And living below their means is.The first thing they need to learn how to do That's the kind of advice you need to be giving them.

Can this woman be any dumber? Inflation was the main reason why CCards and loans are being used more often and the high interest rates are do to high inflation.

Bidenflation

iS THAT A MAN?

Vote the democrats out it’s that simple

A millionaire telling us we can’t afford things. What a joke!

THIS IS A SCAM ARTIST!