Suze Orman Can I Afford It? callers amaze me

[disneysteve]

What the heck are these people thinking? Do they seriously believe they can afford the things they are calling about or do they know they can't but just want to be on TV? Are there that many clueless people out there?

I suppose there probably are. It is just mind-boggling when someone calls and wants to buy some total want and earns a low income and has a ton of debt. Sometimes, the income is substantial but the debt is still high and the savings is low. Someone tonight wanted to spend $18,000 on a harp (she plays for pleasure only, not for a living) but they owed $50,000 in car loans and had just $100,000 in savings. It is no wonder that these people have CC debt and minimal savings. They don't seem to grasp the difference between a want and a need or the importance of saving for the future.

The segment is always entertaining but just makes me worry about the future of this country when there are so many people like this out there.

[SavingCash]

It amazes me too, Steve. $18 grand for a harp? Wow. I wouldn't even spend that much on a car.

People are clueless and that's why they're where they are now.

[Tree0164]

I enjoy that segment and hopefully it is eyeopenning for those that are no even on the show asking questions.

Some of the things are crazy the big fancy cars when they are making 2k a month

[m3racer]

What the heck are these people thinking? Do they seriously believe they can afford the things they are calling about or do they know they can't but just want to be on TV? Are there that many clueless people out there?

The simple answer is YES. But don't worry because our government will bail them out.

[wincrasher]

You may be right, but I keep getting this sinking feeling that the only way our economy works is because of people like this.

If we are all responsible, then we'll all be unemployed.

It just sucks that the economy is fueled by over-leveraged, status craving, credit-card wielding idiots.

[Angio333]

Just a $100,000 in savings????

I'd say that a $100,000 in savings is amazing if that doesn't include their retirement accounts (401K, etc).

[red92s]

Just a $100,000 in savings????

I'd say that a $100,000 in savings is amazing if that doesn't include their retirement accounts (401K, etc).

i was thinking the same thing

[disneysteve]

Just a $100,000 in savings????

Yes, 100K in savings is a good thing, but it is all relative to the situation. Given their income, expenses and debt load, 100K wasn't a significant cushion and definitely wasn't enough for them to go spend almost 20% of it on a musical instrument that they didn't need, especially while they are 50K in debt on their cars.

[My English Castle]

Are people clueless? Yep. I watched dumb NBC Dateline tonight as they tried to dissect the mortgage problem--Everyone on it seemed either clueless or greedy or criminal--from the homeowners to the mortgage lenders to the bond rating agencies. I have to admit the rating agencies made me the angriest--They're supposed to evaluate risk?! The only smart person on the whole show was Elizabeth Warren from Harvard.

[blankcheck]

Problem is, this is something that most people learn on their own, or else they don't learn it at all. Most basic education programs (yes, I am including homeschool too) do not have any time devoted to basic personal finance. It's not the math that's confusing these people; it's the general concept of debt. A large majority of the planet has the idea that being able to afford PAYMENTS of something, means that you are able to afford THE PRICE ITSELF. We can blame the bailout, blame to companies, blame the neighbors, blame ourselves...bottom line, if we want to stop this, we need more people to learn this information, and at an earlier age.

[myrdale]

I was about to ask if you had one too many "0's" on their savings Disneysteve. Seems that is what it is.

We probably paid $2k for my trumpet, and I have had it for nearly 12 years. I don't play it alot but it is a nice thing.

If the lady was truely into playing, I would think it could be budgeted in one way or the other. However I think I would buy a less expensive "practice" harp first, just to make sure it is not a fad.

[wincrasher]

I watched that dateline show too. How about the lady in the red jumpsuit who had 6 mortgages totalling 1.3 million, multiple bankruptcies and showing a negative income on her tax return?

When asked if she felt even partly responsible, she paused and then said "nope!"

[disneysteve]

I was about to ask if you had one too many "0's" on their savings Disneysteve. Seems that is what it is.

We probably paid $2k for my trumpet, and I have had it for nearly 12 years. I don't play it alot but it is a nice thing.

If the lady was truely into playing, I would think it could be budgeted in one way or the other. However I think I would buy a less expensive "practice" harp first, just to make sure it is not a fad.

Just because you have savings, whether it is $1,000 or $100,000, does not mean that you can then afford everything you want. This was one of those examples.

She actually did already have a harp. She said that it was a smaller model that didn't have as many strings and thus couldn't play as many musical compositions, so this would have been an upgrade.

The point was that she wanted this big luxury item and the numbers (income, savings, debt) just didn't add up to be able to afford it.

[glock35ipsc]

Would they have been able to pay off their CC and car debt with the $100k they have in savings, and still have money for ~6 months expenses, then saved for the harp?

I didn't see the show, just curious.

[m3racer]

I watched that dateline show too. How about the lady in the red jumpsuit who had 6 mortgages totalling 1.3 million, multiple bankruptcies and showing a negative income on her tax return?

When asked if she felt even partly responsible, she paused and then said "nope!"

LOL. That's why I don't watch Dateline NBC. It's so biased. They skew so much information. They are the most left wing liberal network. The bottom line is everyone had a hand in the demise. The lender, borrower, & congress. What pisses me off the most is how NBC tries to portray the borrower as a victim. Give me a break!!! If you can't understand your own debt and READ the mortgage contract before you sign it than its YOUR problem. What a bunch of idiots. I especially like the personal trainer that earned <$30k/year but thought she could afford a $250k condo. What a retard.