Thanks to Financial Reality for the play by play.
OK, I admit it. I am a Suze Orman junkie. I watch her show on CNBC every Saturday night. Sure she may be a bit over the top, but she gives great advice that makes financial sense.
There is a segment in which a person has a one-on-one consult with Suze about their financial problems. Enter Dawn, who I am guessing is 40-50-ish married woman with a seven year old. Dawn has a $900K mortgage on a home that is worth about that much. She has spent an obscene amount of money on decorating, designing and landscaping said home. There are not one, two flat screen plasma TV's in the pool area. Dave and her husband have...get ready now...$250K in credit card debt spread out on 24 credit cards and car loans, with a minimum payment of approximately $19K. Oh, and the family's monthly expenses total $19K with a monthly income of $9K. That means there is a $10K shortfall every month.
Oh and one more thing. Dawn was upset that a diamond ring that she wished to purchase was sold to someone else.
All together now....ARE YOU FREAKIN' KIDDING ME?
Dawn does not qualify for bankruptcy; her debt is too high. (I would have laughed her out of my office). Dawn didn't believe there was a problem. She doesn't believe that anyone will take her stuff and she flat out refuses to give up or sell anything to get her family on track. She brushed off Suze's advice and said that everything will work out.
One more time...ARE YOU FREAKIN' KIDDING ME???
I wanted to reach into my TV and slap the crap out of this woman. I mean, DAMN!!!! I saw situations like this during my lawyer days, like the dude with the 110K credit card debt who was living on Worker's Comp. But this is just insane. I mean seriously, this chick is either on crack or needs to sell some to get out of debt. (No wait, cocaine would bring in more money...You all know I am being facetious.)
Sadly, Dawn will learn the hard way when the bank comes to take her house...and all her stuff. But it just grinds my gears when I hear about people like this.
About Me
- Seeking Solace
- I am a college professor who is fumbling through the chaos of academia, rheumatoid arthritis, working on my PhD and just being a 40 something woman. I used to be a lawyer, which made me a snarky little person. I have a wonderful Husband and a German Shepherd named Junior. They help keep me sane.
Paws to Consider
My Sister's Keeper
5 comments:
People are stupid. Really really stupid. Just the idea of credit card debt scares the hell out of me! I think that there has only been one time in my life when I haven't paid my full amount due for the month, and that was for an very unexpected high expense. It was taken care of by the end of the second month. That one time made me nervous. I can't imagine having as much credit card debt as Dawn and family.
I will end grad school with a small amount of student loans, but nothing that isn't manageable. I just don't understand how people get into positions like this. For unexpected medical/emergency-type reasons, sure, but not the Dawn version of this. Wow!
Is there any wonder why we are bailing out businesses?
K8: It would drive me to insanity if I ever got that far. I stress if I am late with anything.
CB: Nope, it doesn't. People just don't learn.
you really should have stole the line "financial porn" from the blog you linked to. That phrase will stick with me for a long time.
She's on now! I don't often watch the show, but I stopped after reading your post and had to tell you. She has big hair! And I really like Suze's yellow sweater. :)
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