Suze Orman's Webcast Transcript

Suze: All right.

Oprah: That's good.

Suze: And the card that they're about to close down, what is the credit limit on that card?

Kimberline: It's a $5,000 limit.

Suze: So most likely, yes, it will hurt your FICO score. Because that is a large credit limit, and when you're taking away $5,000 of a credit limit and you still have the $800 of debt and you only have a few other cards and maybe your other cards don't have that large of a limit, so the bottom line there, it will hurt your FICO score. Now, what you could do if you wanted to is go open up another credit card with a $5,000 credit limit if somebody will allow you to do so. And if they do that and they close this down but you have that there, you're fine no matter what. Now you know.

Kimberline: Okay, thank you.

Suze: Are you sure? You're looking at me like you're not clear.

Kimberline: Well, no, I was wondering because I have other credit cards that are open but they have zero balances and the two that have a balance are about to be paid off this month.

Suze: All right. So, again, though, when—as long as you are carrying a balance, if you didn't have that $800 balance, it wouldn't matter. But because you have an $800 balance, it matters. If I were you, I would try to get rid of that $800 balance sooner than later, and then you should be relatively just fine.

Kimberline: All right, I will do that.

Suze: There you go.

Oprah: Traveling for business. Thank you, Kimberline. We have Richard from Tucson, Arizona, on the phone. Richard, go ahead.

Richard: Both Suze and Oprah I have to say, first of all, I know your time's valuable, but when the universe named angels they named Oprah Winfrey and Suze Orman. That's for sure.

Oprah: That's so nice.

Richard: My question is, I was laid off two weeks before Christmas. Did not know this was coming. And received a severance package. Suze, what do you recommend that I do with this severance package money?

Suze: First of all, hopefully you've put away the taxes that will be owed on the severance money, because that is taxable to you. And number two, we don't know how long it's going to take till you get another job, correct?

Richard: Pardon me? I couldn't hear you.

Suze: We don't know how long it's going to take before you get another job. Correct?

Richard: Correct.

Suze: So if you were to do something, let's say you invested the severance money. Would you be able to last at least eight months paying your necessities of life, your rent, your mortgage, your cart payment, your food?

Richard: I would probably say probably a good five to six months.

Suze: Five to six months in this economy is not enough. This is an economy where we have a 7.2 percent unemployment rate. This is an economy where most likely you are going to see the unemployment rate go up to 8, 9, possibly even 10 percent. So in this type of an economy, please keep your severance safe and sound. I would put it in the highest-yielding savings account, CD I could find. I would not be investing in the stock market with that money at this point in time under any level. Keep it safe. Keep it sound. Don't do anything with it. And here's the reason why besides that. You have to get yourself another job. For you to get another job, you have to walk in and somebody has to be attracted to you to hire you. What attracts somebody to you to say, "Here's—you take the job"? When they feel powerful in your presence. When they feel secure in your presence. When they feel that you are going to enhance them. And if you are worried about money, if you are scared because you have credit card debt, if you don't know what to do—

Oprah: Wow.

Suze:—you are shaking whether you know it or not. And the person that you're sitting with, whether you have the most magnificent résumé or not, they don't look at the words. They feel what they feel when they're in your presence or on the phone with you. So make yourself powerful with what you do. Make yourself secure, and a job will be attracted to you because of who you are. That's the goal. There you go.

Oprah: Wow.

Richard: Wow.

Oprah: That was angel talk right there.

Richard: Wonderful advice. You boosted my confidence level off the radar screen.

Oprah: Yeah. That's really, really good Suze. My eyes watered a little bit there because—really. You know why, Richard? Because that is so true. You know the truth when it resonates with you because you can't attract what you don't have.

Suze: That's right.

Oprah: That's right. And so when you walk in feeling unconfident or feeling, as Susan said—as Suze said, shaken, people sense that even though they don't know that's what they're sensing.

Suze: Yeah. Remember, Oprah, in all the years we've been doing these shows, I would always say, "Power attracts money and powerlessness repels it." Why is that? Power—money flows through people. Money—people are the ones who go out and earn a paycheck, spend the money, save the money, invest the money. You know, it's a person who hires you. It's a person who fires you. Money can't do anything without people.

Oprah: Right.

Suze: So when, you know, if—people are attracted to power. People want to be around powerful people.

Oprah: That's right. That's right. That's what you sense when you hire somebody. Yes.

Suze: That's right.

Oprah: Yes.

Suze: And so when you don't have money and you have debt and you're afraid, you've rendered yourself powerless.

Oprah: Yes.

Suze: And then you repel people. And since people control money, you repel money too.

Oprah: Richard, thank you so much.

Suze: Bye, little angel boy.

Richard: Goodbye.

Oprah: If you have a question for Suze, call the number at the bottom of your screen—866-677-2496. Now we have Tisha on the phone from St. Louis. Tisha, hi.