Chuck Jaffee, in an article he wrote for Investor's Business Daily has this to say about Suze Orman:
If you knew Suze like we know Suze
Anyone who has ever heard my radio show knows it's no secret that I am no fan of pop-culture personal finance guru Suze Orman, but I couldn't help but do a double take when during one of her recent shows on CNBC.
In talking about debt, Orman said: "One of the books I wrote, I did a whole section on good debt and bad debt. In fact, I was the one who created that terminology, good debt/bad debt in the United States back in 1999."
A quick check of a not-too-complete database found hundreds of stories written throughout the 1990s using the terms good debt and bad debt and describing them roughly in the fashion Suze claims to have originated. (Good debt is generally considered to be an investment in who you are and who you will become, so mortgages, student loans and, sometimes, car loans are the kind of things that qualify. Bad debt comes from paying for today's wants with tomorrow's cash, thereby jeopardizing your ability to meet your future needs. Think credit card debt.)
A couple of those articles were my own, although the financial advisers I quoted on the subject must have found out about good and bad debt while visiting foreign countries, since Suze hadn't created the terms here and wouldn't for several years.
No one corners the market on good financial advice. Anyone who suggests they do, who acts as if their way is the only way, probably is espousing methods that falter under intense scrutiny.
One other Suze note: She won a daytime Emmy Award this week in the "best service show" category (Martha Stewart was robbed!). Upon learning she had won, Orman said: "For the first time in my life, I am seriously speechless."
Here's hoping she wins a lot of awards.
I suppose a big ego and the feeling of entitlement to judge people based on an iota of information are inherent attributes of guru-dom these days, but the whole Suze Orman/Dr. Phil phenomenon still amazes me. Last night, dozing off to sleep, I caught part of the Suze Orman show on T.V., and a caller asked about the damage to her FICO score caused by her parents' charged-off credit card account (she was apparently an additional cardholder). In the course of giving this poor woman fairly standard advice about repairing her credit, Suze called the woman's parents "losers," and "bad examples" with no integrity. I ask you: (1) Were these insulting remarks about the woman's parents really necessary or even relevant to the financial advice Suze imparted? and (2) Does Suze give a second's thought to the possibility that there are people in this world who, despite the best of intentions and solid moral values, come upon hard times, like illness or job loss? Her gratuitous and offensive remarks about the character of people who have debt is proof that if she ever had any empathy for ordinary people, such sentiment has long been washed away by the inexplicable flood of good fortune in her own life.
What cultural force has created this mindset that it's necessary to give up your self-respect to obtain worthwhile financial advice (or good relationship advice as in the case of Dr. Phil)? Suze Orman's money advice is fairly standard fare, nothing earth-shattering. Certainly, her information is no better than Jean Chatzky's -- and Jean doesn't have that obnoxious personality to go along with it. So why do people tune into Suze more than anyone else out there dispensing very similar advice? I believe it's the same underlying need that used to (and still does) draw people to television evangelists. It's a certain kind of bizarre "charisma" (defined in the Oxford Encyclopedic English Dictionary as "1.a. the ability to inspire followers with devotion and enthusiasm, b. an attractive aura; great charm. 2 a divinely conferred power or talent"). So, Suze requires you to surrender your own ego to hers, and if you do that, you will pay off your credit cards, save the maximum in your 401(k) plan, deny all others, and see the light.
And, what about that sidekick of hers, the obsequious Jeff? Maybe this is beside the point, but he makes me cringe. Better not to get off on this tangent -- save for a later time.
I recently caught up with Scott Bilker, known as the "Debt Daredevil." He has a website, debtsmart.com, that is devoted to teaching consumers how to beat credit card debt. I was curious to know who this man is and what motivates him, so I asked him to respond to a few questions by email, and he obliged.
HK: The first thing I noticed on your website is that it's kind of whacky. The cartoon of you as the Debt Daredevil does stand out among all the other images related to this topic. Most people don't think debt problems are funny, but I've always appreciated dark humor. What was your motivation for making your website comical?
Debt Daredevil: I wouldn't call it "whacky," I like to think of it as an unconventional approach, but very effective. The Debt Daredevil is not a funny character. His goal is to help people understand how to use credit to their advantage and that doing this may seem "daring" to some but when you think about it, and do the math, the strategies work!
HK: Before you became the Debt Daredevil, what profession were you in?
Debt Daredevil: Electrical Engineer for NAVAIR at NAES Lakehurst http://www.lakehurst.navy.mil). My department handled VLA (Visual Landing Aids) for all air capable ships.
HK: What do you think is the biggest mental hurdle when people are trying to figure out how to deal with their debts?
Debt Daredevil: Not seeing their own credit options and power as a consumer. They feel that they're at the mercy of their credit card banks. The truth is that the banks are at our mercy! They're a business like any other, and we need to fire the banks that don't give us good deals. That means transferring balances and cancelling accounts. People have credit options but many just don't see that.
HK: Do you hear from institutional creditors, and if so, what are they saying to you?
Debt Daredevil: They say, "Hey Scott, we'll give you one year at 0%." Really, I know you're asking if they're saying anything about my showing people how to do better with banks but the truth is they don't seem to care. They're more concerned with me using my personal credit lines.
HK: Do you give seminars or is your information available exclusively on the website and the products available on your site?
Debt Daredevil: Online (http://www.debtsmart.com) and in print with my three books, "Talk Your Way Out of Credit Card Debt," "Credit Card and Debt Management," and "How to be more Credit Card and Debt Smart." I'm working on developing online programs that will help people manage their credit, create a repayment plan, and earn money, but that won't be ready until next year.
HK: About bankruptcy reform legislation -- I m concerned that many people who deserve a fresh start will not get it if this legislation is passed, and that crooked credit counseling companies will take advantage of all these people who are going to be abandoned by their government. What's your opinion about bankruptcy reform?
Debt Daredevil: My opinion is that bankruptcy reform will hurt the majority of the people! Sure, there are some that are taking advantage of the system, but I believe the current reform is too one-sided. The banks are partially responsible. They lent the money to many people whom they knew didn't have the ability to repay and they tried to gouge them, and everyone else, with high rates and fees to make up the difference.
HK: Do people recognize you on the street?
Debt Daredevil: Maybe on my street. Actually, maybe in my town but that's because I'm a member of the Barnegat Board of Education. Other than that there has only been one time that someone recognized me from a TV interview about credit cards but they said, "Hey, I recognize you. I saw you on TV right? Are you in a band?"
What’s with Suze Orman’s holier-than-thou approach to giving personal financial advice? It drives me absolutely insane. Yet, there’s a certain set of people who seem to respond to this approach – the finger-pointing, the scolding, the tidbits of advice starting with the words, “I want you to.” Is it all about her? Certainly, she sells a lot of books, and people call in to her television show to be publicly humiliated. I wonder if I’d get more business if I tried a more aggressive, sanctimonious approach with my clients. Come to think of it, there are some who ask the same questions over and over again because the answer I’m giving contains options. When I’m finally backed into a corner and forced to tell them what to do, no ifs, ands, or buts, there’s a palpable sense of relief in the air. For some people, I guess any advice that presents choices or the message that “you’re a good person who deserves respect despite this dilemma” isn’t worthwhile. They want to be told what to do unequivocally, they want the advice to hurt, they want tough love. That’s what Mistress Suze gives them. “Sit in that chair and make a list, bark like a dog, eat dog food until your credit card bills are all paid off and you’ve got money to retire on, you worthless excuse for a human being.” My theory is that the majority of people who are in financial crisis are quiet about it because they have self-respect and don’t want to be berated and put down.