Financial Planning for New Year: 'Credit Card Debt Has to Go'
We are a week into 2009, and already it's been a roller coaster ride with the economy. We
have little or no control over what's happening in Washington and on
Wall Street. We do, however, have control over our own wallet. Financial guru Suze Orman spent an hour on Oprah Thursday afternoon showing us how to best manage our money in the new year. "If
you have credit card debt, your number one goal is to get out of credit
card debt before we have a savings, before you do anything. Your credit
card debt in today's economy, according to this action plan, has got to
go," Orman said. Local financial planners agree. Tom O'Brien is
a local CPA. He believes you should limit your consumer debt payments,
including your car loans, to less than 15% of after tax net take home
pay. He says a lot of people are way over that, and they get into trouble because they can't simply pay their bills every month. Orman
recommends paying the minimum on every credit bill you have, every
month. Then, pay extra on the card with the highest interest rate until
one-by-one you pay off every card. If your debt is under
control and your looking to start saving in the new year, there are
several options where you can still make a good return. Resources for
