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Why are Americans in more debt than ever?
Financial advisor to millions, Suze Orman, has an important message for every family in the country—she says a financial catastrophe is looming because American families are living too far beyond their means.

"The credit card companies, the mortgage companies, the banks, lenders, they are making their future off of enticing all of us with offers that we feel are too good to pass up," Suze says. "So we don't understand the true ramifications of when we take out a loan, when we charge something on a credit card, when we do a student loan, we don't get it."

Although there are many money programs and magazines available, Suze says people aren't listening to the lessons they can teach. "People are so busy watching reality shows, getting so lost in everybody else's mess, that they're not even looking at their own financial reality show that's going on," she says. "When they take a mortgage that's interest-only and it's an adjustable rate mortgage, they don't understand what that means. All they see is they're going to get to have a house like everybody else. … But they don't understand the true cost of it."
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FROM: Ask Financial Powerhouse Suze Orman Anything
Published on January 01, 2006
Please note: This is general information and is not intended to be legal advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio, and a qualified legal professional before executing any legal documents or taking any legal action. Harpo Productions, Inc., OWN: Oprah Winfrey Network, Discovery Communications LLC and their affiliated companies and entities are not responsible for any losses, damages or claims that may result from your financial or legal decisions.

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