Suze Ormand on Oprah

[Caitsmama]

wow.. i would love to see this show if it airs again!

 

[disneysteve]

Suzze did tell them they both needed therepy, in fact the first thing she said was this wasn't really a money problem at all. The suggestions she made was to keep a roof over their heads and get the kids insurance ASAP while they work on getting their psychological acts together.

And I think that makes sense. I just think there is a whole lot more needed here than just a financial intervention.

 

[dogluva]

That's why I hate these shows. These people don't have money issues. Any time you get on tv and say you almost lost a child and you don't make sure from that point on that your children have medical care, you are a negligent parent.
These are serious, "in need of mental help" problems. I once dated a guy who was in love with his car. I mean seriously would not let me touch the thing, I knew after he picked me up twice that the guy had serious problems. Talk about red flags.
These people needed way more than Susy Orman.

The second couple referred to the car as "their baby". Mean while the real baby she is carrying, doesn't have a crib to sleep in (hope she co-sleeps). Seriously, what about your real baby? Shouldn't she be thinking of her baby and not her car.? Suze said they could live off his salary if they had a clue.

So, sad, but way more than just having money problems like you said.

What kind of family life does the first family have-shopping? Getting manicures and extensions. Please. SO materialsitic.

This is so sad-these kids need to see a dentist and a doctor-not a hairdresser and manicurist!

I work basically to get my health insurance (very cheap-I work for the city). I cannot imagine (as a mother of six myself) not having it! I just took my youngest in-he has strep. I pay a copayment of $5. If I had to pay out of pocket, I would be broke. Maybe her kids don't get sick. I just know, mine do and health insurance is very important. Up there with shelter and food.

 

[MrsPete]

The husband is just as guilty in that mess too. The guy brings home 5K a month. $1800 to the mortgage, $1,700 for the cars. Did he really think that all of the *stuff she was bringing in that house was covered by the remaining $1,500. That's not even mentioning things like, oh, I don't know....food, utilities, auto insurance. He's full of crap when he says that he didn't know it was bad.

While I didn't see the show, I can say that my husband genuinely doesn't know how much I spend on groceries or kids' clothes. He dislikes shopping. He dislikes seeing money go out the door. So I do the vast majority of the purchasing in our household, and he ventures out to the mall really only around my birthday and Christmas! Of course, my spending is well within acceptable limits, so we have no issues like the family being discussed, but if he had a gun to his head, he probably could not tell you the cost of kids' jeans or shoes.

When she was talking about her garage sales, I was thinking "Wish I could be at your garage sale, lady!" That furniture looked nice But seriously, four garage sales a year?!? That's crazy.

I always think this same thing when people talk about having a garage sale even yearly -- or when people talk about making $$$$$ at yard sales! No one MAKES money at a garage sale; they simply recoup a portion of what they've already paid out to the stores! Of course, I also don't see the point in collecting your change in a jar when the bank is safer and pays you interest.

While I'm a huge believer in personal responsibility (these people should have known better, and shame of them for not pulling out of this debt spiral sooner), I feel that part of the blame for this are the banks and CC companies. How and why does a couple that makes 100k get a 600k+ mortgage, high dollar car loans/leases, and high limit credit cards? It used to be that a bank would say "no, you have no way of paying that back". These days it's "sure well give you the loan, we can always repo the car(s) or foreclose on the house or garnish you wages". Yes, these couples should have had the sense and will power to say "no", but at the same time the banks should have never said "yes".

You're absolutely right. While these people are an extreme case, plenty of other people are living a smaller version of this same situation.

ITA. This isn't a money problem. It is a psychiatric problem. It won't be solved by adjusting spending or moving or closing a credit card or two. It won't be solved without intense psychiatric care, counseling and, most probably, prescription medication. This was way out of Suzy Orman's field.

Ah, but let's consider the source. They didn't go to a financial expert or a doctor -- they went on TV. Why does Oprah put anyone on the show? It's not to be helpful to the rest of us, it's all about ENTERTAINMENT and RATINGS. If they'd gone to a doctor, they'd say just what you did: prescription medication. And I'd be willing to bet that's the right answer.

 

[Imzadi]

Ah, but let's consider the source. They didn't go to a financial expert or a doctor -- they went on TV. Why does Oprah put anyone on the show?

Uh, Suze Orman IS a financial expert. One of the best. Just because she went on TV doesn't negate her being one. What she is not is a psychiatrist, which she should have referred this woman to.

 

[dvcgirl]

While I didn't see the show, I can say that my husband genuinely doesn't know how much I spend on groceries or kids' clothes. He dislikes shopping. He dislikes seeing money go out the door. So I do the vast majority of the purchasing in our household, and he ventures out to the mall really only around my birthday and Christmas! Of course, my spending is well within acceptable limits, so we have no issues like the family being discussed, but if he had a gun to his head, he probably could not tell you the cost of kids' jeans or shoes.

I know what you're saying Mrs. Pete, but this was *extreme*. They had 135K in CC debt, and this guy brings in 5K a month in income. They had three cars totaling $1,700 a month, the mortgage was $1,800 a month (on an horrific negative amortization loan of 600K). He had to know that they couldn't afford *anything* she was buying.....

 

[Tiger926]

I know what you're saying Mrs. Pete, but this was *extreme*. They had 135K in CC debt, and this guy brings in 5K a month in income. They had three cars totaling $1,700 a month, the mortgage was $1,800 a month (on an horrific negative amortization loan of 600K). He had to know that they couldn't afford *anything* she was buying.....

Totally agree - what makes it worse for the hubby is that just adding up the mortgage and car payments, two items he had direct knowledge of by signing papers on, these two add up to almost his whole take home income (which is around $60,000.00). The wife could totally have hidden CC purchases from him, and then he would be at fault for never checking on them, but it's these big purchases that he had knowledge of that I have a big problem with - he can't blame the wife for these at all.

Tiger

 

[DVC Sadie]

I blame the husband for the things he was aware of but did nothing about.

1. He knew his kids did not have medical and dental insurance.
2. He knew that neither he or his wife had life insurance.
3. He knew the price of the cars and mortgage.

How can anyone not see their spouse on a daily basis and not know that they are spendind huge amounts of money on nails, hair and pedicures.

I hope they get health insurance soon because the bill for therapy, for the both of them, will be huge.

 

[funnyesq]

1. If the facts are accurate....they are both in trouble.
2. If I understood....there is no equity...house will probably be foreclosed and out they go. Suzy said...mortgage was about to go up to $3300 a month from 1800. The couple won't meet that. They can't. Net on a $100,000 job is about 70,000 (considering kids and interest deductions). Maybe net is even higher. So let's assume 6,500 per month net. 6500-1800 currently paid mortgage = 4700- 3 cars at about 1500 = 3200, -1000 at least for food (for 8 mouths) = 2200 divide by 8 = less than 300 per person for clothing, medical and other essentials of life. They are screwed.
3. So they lose the house. They can either move to a cheaper area or try to stay and find new housing. Renting a house for 8 people in California is gonna cost more than the $1,800 they were spending on a mortgage that was going no where. They have to move to a cheaper area..hence Washington. And Susy is correct that they don't have state income tax there soo...they get more bang for their buck...but probably a small decrease in his work income. Housing is cheaper there as well.
4. So the house is gone...and that leaves them with the 3 cars...one has to be sold...the other 2 can either be sold for 2 beaters (basic transportation vs...fancy transportation they cannot afford) or kept. It's a which alternative saves me $$ basic math. If they can get down to say $500 a month for 2 beaters...that should help.
5. That then leaves the $135,000 in CC debt. Bankruptcy...here we come. Problem is that he makes too much money to meet the "means" test and will probably be found to have some disposable income to pay that off. Probably not at 22% or whatever the CC rate is...but he will be paying something and it will be for at least 5 years...so divide 135,000 by 60 and you get over $2,200 per month just for the principal on the CC debt. In California he's not entitled to much for housing with 6 kids etc...so his "disposable" income may well be about $1500+ per month. So now he has $2000 for rent (if he can find a house that cheap in CA)...$1500 for CC debt, $1,000 for food, $500 for cars...utilities, gas is probably another $1,000 when combined...so the total basics is $5,000...leaving about another $1,000 for other essentials like medical, clothing etc. They have 6 kids!!!
6. She is going to have to WORK full time. If his work can't provide health insurance for the 8 of them...and Suzy is correct that a job a Starbucks would...then yes...working for Starbucks is a good idea. Health insurance for 6 kids and 2 adults is astronomical in CA so if Starbucks will pay that bill and require only part time work...that's a good deal evenif Starbucks only pays say $10 an hour. The other 20+ hours per week...she will have to get a good paying JOB...and both may have to put in some EXTRA time...which is a shame for the kids.
7. We haven't even talked about the kids expense...like child care. Many were under 10 years of age...WHO is going to take care of them while Mom is working? And at what expense?
8. Even if they move to a cheaper state...they have MAJOR, MAJOR problems. It's called wake up FAST. She just can't continue as she has. I'm surprised he hasn't divorced her by now. And YES...it's as much HIS problem and contribution as it was hers...what was HE thinking??? He wasn't. Sad for these kids.