How can I pay down debt and save when I live paycheck to paycheck?
One woman in the audience owns a house, has a second mortgage and credit card debt, but she's starting to think about her future. "I'm 29 years old and I want to start saving," she says. "How can I save when I live paycheck to paycheck?"
The interest rate on her credit card is 20 percent. "I can guarantee you a way to make a 20 percent return on your money, hands down," Suze says. "Pay off your credit card debt."
She can start by looking at her FICO score. "You can get a high FICO store," Suze says. "You can do a balance transfer from 20 percent hopefully down to 6. When you can start making more out of less money by paying less in interest, you then have more money to save for your future."
But Suze doesn't want her to become so focused on the future that she forgets about the present. "Your present is now determined on what you did in your past, and what you did in your past was you spent money you didn't have and now you're paying the price," she says. "It doesn't matter because you're young. You have time on your side. And as long as you are just willing to be a warrior and not turn your back on that financial battlefield, you will be so okay, I can't even tell you. So don't feel bad about it. Just learn from what you did."
A wealth of unexpected financial advice, from canceling credit cards to being an aggressive enough investor to avoid a cat food-fueled retirement.
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.