Oprah show on Friday about getting out of debt.

[MyGoofy26]

Actually, the bankruptcy laws have changed. WE don't pay for their debt; the debter does. They have to pay all of their debt back if they filed bankruptcy. Thanks to Bush and the new bankruptcy bill that passed some-what recently.

Not necessarily - with certain qualifications (basically if you make very little money) people can still file Chap 7 and not have to pay back.

 

[doubletrouble_vb]

It is reasonable for an african american women to spend between $1200 and $2400 on her hair if its in an unnatural state. Any natural hairstyles that require stylist support will cost also...my current natural hairstyle cost $1500 in the first year and about $850 thereafter until I learned how to do it myself... I've got it down to $150 to $450 depending on how badly I've messed things up over the course of a year.

I'm not quite sure what spending $7,000 is getting her other than the satisfaction of going someplace high end to get the exact same job done.

And before you say it going any form of natural isnt for the vast majority without a sea change in styles like in the 1970's..

 

[pearlieq]

I'm not sure what the conventional rule of thumb is. I'm sure someone will post that info.

Assuming acceptable credit and debt ratios, a bank with usually lend you 3x your income, plus another $15,000 - $30,000. Of course, whether anyone SHOULD take that is a different topic.

I'm honestly getting a little frustrated with this thread. It seems like some folks are being deliberately obstinate.

Oprah doesn't make anyone purchase anything, but makes a point of trotting out luxury items to buy. I don't care how Oprah spends HER money, but she does seem to spend a lot of time modeling and pushing a consumption-driven lifestyle.

If we're not concerned with how viewing something affects someone, why don't we take children to R-rated movies? Why don't we encourage alcoholics to spend time in bars?

I guess Oprah has one of the most influential pulpits in America, so if today's show did anyone any good, that's great. I still see her as an unlikely source for financial wisdom.

 

[LauraR]

I actually watched the second half of the show with my two sons (9 and 11), and was able to use it to make several points to them. We were watching the third family, when they showed the mom buying her daughters clothes with money that was supposed to go to bills. She said some thing like, "I love them and I want to give them things." That's when I said, I love you, which is why I'm saving money for your college and NOT getting you lots of things." They both seemed to get it. Then when they showed the father's discomfort with the girls not being asked to do anything to help out I said, "They are not doing those girls any favors. The reason I want you to help out around the house, is because I want you to be prepared to live on your own, or to be a good housemate with someone else." So I think it was a good show for them to watch. Both DS's were shocked at how much debt the families were crushed by, and how much they were spending on non-essentials. Now we'll have to see if they stop bugging me for their own computers and t.v.'s in their rooms!

 

[Jon99]

Whether or not Oprah's show is viewed in a positive or negative fashion in an opinion, but its a good thing that personal debt is becoming a hot topic.. We are both in our early 30's and we had NO IDEA we were in trouble until about 6 months ago when we actually did a budget and figured out we were spending $75K per year and making $65K.. Now we are looking at $48K in personal debt ($28K in credit cards at 6%-9.9%, $8K student loan at 8% and $12K Jeep loan at 0%)..

We are slowly getting things in line, have our budget in line and knocking the CC debt off at a clip of $400/month.. Its not fun, but hopefully its a step a lot of people like us are taking!

 

[Lisa loves Pooh]

Oprah doesn't make anyone purchase anything, but makes a point of trotting out luxury items to buy. I don't care how Oprah spends HER money, but she does seem to spend a lot of time modeling and pushing a consumption-driven lifestyle.

I'm sure her audience has something to do with it. Whether or not they can afford things--who knows. But someone is buying and it really isn't her call on having to play debt-cop. If she wants to show a gadget or whatever (haven't seen it in a while--so don't know what segment it is)--who CARES!!!

I'm sure this will just be fodder and just as she got sued for the whole don't eat meat thing...someone will sue b/c Oprah had the audacity to suggest something and they were compelled to listen to a tv show and go buy it.

Since when do we compel a television show to be model behavior for anyone. It isn't the sitter, it isn't the conservative smack down and it isn't your mother. It's a show and if you cannot watch it for just entertainment purposes--it isn't Oprah's fault. And if anyone decides to follow in cult-like behavior her every suggestion--again, it isn't her problem.

 

[mel]

Watching billionaire Oprah tell me how to get out of debt would be like watching Dick Cheney giving rifle lessons. If I made her money-I wouldn't be in debt either. Let's face reality-there are ways to get out of debt-but enjoy life too. Yes-I have some debt-still paying off a 3500 credit card-but I am not giving up a trip to Disney to do it.

If the Fed would stop raising interest rates-struggling Americans would be in a better position to pay things down. My HELOC is now over 10% interest-thanks to the Bush cronies.

Again-the rich get richer-the poor get poorer.

Well said!

 

[sk!mom]

I am willing to bet that many totally debt free people on this board are in that 42 to 60 age bracket.

I am in this age bracket now but we were totally debt free except for our home at age 38.

 

[kfeuer]

Alot of people seem to be taking comments that were directed about the people in debt up to their eyeballs personally. If you can afford $2,000/year for your hair, go for it! The woman on the show with $170,000 in consumer debt clearly *can't* afford it. For those who didn't watch the show, every family profiled was in the position they're in because of choices they made and just plain out-of-control spending. If bad luck contributed to any of their problems, it wasn't mentioned.

To the poster with medical bills, I have nothing but sympathy for your situation. Sometimes life happens and we're not in the best position to deal with it. Sounds like you're doing your best. We're not high income earners and we don't anticipate paying our house off early, either. It's hard enough being in a 15-year mortgage right now! There's only so much you can do on a smaller income no matter how frugally you live.

Lisa, you made a good point that the first family probably wouldn't stick to anything too extreme at this point. That woman is so far out of touch with reality...I hope she wakes up and that the moderate changes will lead to more changes. It seemed like she was still in denial, though. It'll be interesting to see if they stick with it.

 

[kfeuer]

Whether or not Oprah's show is viewed in a positive or negative fashion in an opinion, but its a good thing that personal debt is becoming a hot topic.. We are both in our early 30's and we had NO IDEA we were in trouble until about 6 months ago when we actually did a budget and figured out we were spending $75K per year and making $65K.. Now we are looking at $48K in personal debt ($28K in credit cards at 6%-9.9%, $8K student loan at 8% and $12K Jeep loan at 0%)..

We are slowly getting things in line, have our budget in line and knocking the CC debt off at a clip of $400/month.. Its not fun, but hopefully its a step a lot of people like us are taking!

You're moving in the right direction, good job! Keep it up!

 

[barbeml]

Maybe what Oprah needs is a crawl to run under her Favorite Things segment that says DON'T BUY THIS AT HOME...DON'T BUY THIS AT HOME...

Good one!!

 

[disneysteve]

What is HEL

HEL is Home Equity Loan
HELOC is Home Equity Line of Credit

 

[dvcgirl]

I'm sure her audience has something to do with it. Whether or not they can afford things--who knows. But someone is buying and it really isn't her call on having to play debt-cop. If she wants to show a gadget or whatever (haven't seen it in a while--so don't know what segment it is)--who CARES!!!

I'm sure this will just be fodder and just as she got sued for the whole don't eat meat thing...someone will sue b/c Oprah had the audacity to suggest something and they were compelled to listen to a tv show and go buy it.

Since when do we compel a television show to be model behavior for anyone. It isn't the sitter, it isn't the conservative smack down and it isn't your mother. It's a show and if you cannot watch it for just entertainment purposes--it isn't Oprah's fault. And if anyone decides to follow in cult-like behavior her every suggestion--again, it isn't her problem.

Well, since we're discussing it....Oprah herself constantly talks about how she'd like her television show to be a model for viewers to watch, and then implement things learned from it. She really does. And generally, I think she's successful at it. I actually like Oprah, and enjoy her show on occasion.

She also mentioned yesterday that she's been talking to her producers for two years about putting together a series like the one she started yesterday and finally the pieces came together. Two years? Why would it take two years. Listen, I'm not blaming Oprah for *anything*, but she can't take the lofty position here of "Debt Crusader".

Many of her shows are mega-marketing tools. Yes, I'm sure that most people aren't likely to run out and purchase all of the items from the "Favorite Things" program, but it's just another example of how pervasive the marketing of luxury items to "everyman/everywoman" is in our society. Whether she'd like to admit it or not, Oprah is a participant in that type of marketing.

 

[LauraR]

I actually think Oprah is overall a positive force in her viewers lives, but I do think she sends a lot of mixed messages. In addition to the expensive "favorite things"/ "debt diet" dichotomy, I've seen her do a show on plastic surgery horror stories, followed by a show on the latest plastic surgery breakthroughs. And she'll do a show about poverty in Africa and then one showing her lavish 50th birthday celebration. But hey, she's not not Saint Oprah, she's a talk show host who, to her credit, has chosen to spend a lot of time helping people better their lives. By the way, I enjoy her "favorite things" shows, but I've never been even remotely tempted to buy anything I've seen there (I'm way too cheap!) It's still fun to "window shop," though!

 

[Carrie Ellis]

Watching billionaire Oprah tell me how to get out of debt would be like watching Dick Cheney giving rifle lessons. If I made her money-I wouldn't be in debt either. Let's face reality-there are ways to get out of debt-but enjoy life too. Yes-I have some debt-still paying off a 3500 credit card-but I am not giving up a trip to Disney to do it.

If the Fed would stop raising interest rates-struggling Americans would be in a better position to pay things down. My HELOC is now over 10% interest-thanks to the Bush cronies.

Again-the rich get richer-the poor get poorer.

Actually many rich people go broke. In this months Woman's Day magazine, Wynonna Judd talks about how she nearly went bankrupt from overspending.

I was painting a room the day Oprah's show about debt was on and I decided to keep painting. If I had watched it, it would have been for entertainment. I think we all know why and how we get in debt. I really don't think anyone needs an expert, book, etc.. to tell them why. It is nice to read about how people got out of debt and at what point they decided to make a change but otherwise it is really simple. My husband is a Army reservist and he got deployed two years ago. We new it might happen so it was very retarded of us not to super plan for this. His salary was nearly half of what he made then. I don't need a book to tell me to save for what could happen. It could be anything, medical, kids, depression.... I would not blame anyone. It is our fault!! I am wiser now and we are very careful but not perfect. I think the little devil on my shoulder does alot more talking than the angel on the other!!!

I have a friend who has 3, yes 3, mortgages on her house!! They own a Tahoe, Civic and a Harley! She has 3 kids in daycare and her and her husband work day and night to keep up. She thinks it is working because nothing has happened to them yet and nothing may never. It is alot easier to brag when everything has went your way by shear luck!!

 

[summerrluvv]

Not necessarily - with certain qualifications (basically if you make very little money) people can still file Chap 7 and not have to pay back.

You don't have to "make very little money" to file a 7. I work for a BK attorney and most people can (and do) still file a chapter 7.

 

[mickeyfan2]

We live in a tiny little house so that we can afford things like Disney , so I am not really sure about this. Should you really be living in a house that is 3 times your anual income? This seems like a high house payment to me. At least one that doesn't leave much extra for fun stuff!

The general rule is you can borrow up to 2.5xs your income. That would make your payment about 25% of your income.

 

[disneysteve]

I think we all know why and how we get in debt. I really don't think anyone needs an expert, book, etc.. to tell them why.

The definition of Insanity: Doing the same thing over and over and expecting a different result.

I think what the experts, books, talks shows, etc. provide is a wake-up call and a plan. Yes, people may know that they are in debt because of overspending but as much as they try, they can't seem to change their habits. The books and experts provide a different set of tools with which to attack the problem. Someone who is chronically in debt often wants to get out of it and just can't figure out how.

To use the diet analogy again, people who are overweight may know why - too much food and too little exercise. But if they don't know any other recipes and they don't know how to start a fitness program, they'll just keep doing what they've been doing and they'll remain overweight.

There is no one-size-fits-all solution for debt reduction just as there is no perfect weight loss plan. But I still think the books and talk shows and magazines serve an important purpose and a valuable resource for people trying to reform their bad habits.

 

[MyGoofy26]

Finally watched this last night when it reaired. Didn't enjoy it all that much. Is it just me, or was there very little practical information? The examples are so extreme, and they spent SO much time going for the "gasp" factor that very little of the show was actually focused on HOW to handle debt. And I think there's SO much more to worry about than just cutting spending. Sure, that's a huge part but if you're going to tell America to cut spending. . . shouldn't you explain the best ways to budget? Which bills to pay off first? Where and how to start saving?

I know they're going to be following up with these families, but judging from the previews they're going to be going for the "gasp" factor yet again and it'll be an hour filled with the families butting heads with the financial advisors. I wonder how much tangible information we'll actually get from the shows.

I'd have like to see a family that is struggling because of other things than excessive spending.

 

[disneysteve]

they spent SO much time going for the "gasp" factor that very little of the show was actually focused on HOW to handle debt. if you're going to tell America to cut spending. . . shouldn't you explain the best ways to budget? Which bills to pay off first? Where and how to start saving?

I agree, but I think all of that would take way more than 45 minutes. I'm hoping that as the series goes along, they'll get into that stuff more.