Suze Orman's 5 tips to beat credit card debt | finder.com

Suze Orman’s credit card tips

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Suze Orman is a genius when it comes to tips that may help you get out of credit card debt once and for all.

Some people use their credit card to help pay bills and buy necessities. But, if you are broke because you just enjoy spending money on credit, you need to be ready for a change.

The same strategies can be used to help get you out of debt whether you are in this situation due to necessity or indulgences. The idea is to pay the lowest interest rate possible, as quickly as possible, without falling into all of the credit card traps the companies have in fine print.

Compare balance transfer credit cards to lower your interest

Name Product Intro Purchase APR Intro Balance Transfer APR Annual Fee
0% for the first 15 months (then 15.24% to 26.24% variable)
0% for the first 15 months (then 15.24% to 26.24% variable)
$0
Earn a $150 bonus statement credit after you spend $1,000 on purchases in the first 3 months. Rates & fees
0% for the first 15 months (then 14.24%, 20.24% or 25.24% variable)
0% for the first 15 months (then 14.24%, 20.24% or 25.24% variable)
$0
An 15 months 0% intro APR period on both purchases and balance transfers, plus zero foreign transaction fees, makes this is a strong well-rounded card. See Rates and Fees
0% for the first 15 months (then 17.24% to 25.99% variable)
0% for the first 15 months (then 17.24% to 25.99% variable)
$0
Earn 3% cash back on all purchases in your first year up to $20,000 spent. After that earn unlimited 1.5% cash back on all purchases.
0% for the first 15 months (then 15.24% to 26.24% variable)
0% for the first 15 months (then 15.24% to 26.24% variable)
$0
Earn a $150 statement credit after you spend $1,000 or more in purchases with your new card within the first 3 months of card membership. Rates & fees
0% for the first 15 months (then 17.24% to 25.99% variable)
0% for the first 15 months (then 17.24% to 25.99% variable)
$0
0% intro APR for 15 months from account opening on purchases and balance transfers.
0% for the first 12 months (then 15.24%, 19.24% or 25.24% variable)
0% for the first 12 months (then 15.24%, 19.24% or 25.24% variable)
$0
Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees.
0% for the first 12 months (then 15.24% to 26.24% variable)
0% for the first 12 months (then 15.24% to 26.24% variable)
$95
Earn $250 bonus cash back after you spend $1,000 on purchases in the first 3 months. Rates & fees

N/A

0% for the first 12 billing cycles (then 16.24% to 25.74% variable)
$0
When you spend $500 on your card within the first 90 days, you’ll receive a $150 cash back bonus. Rates & Fees

N/A

0% for the first 15 billing cycles (then 17.24% variable)
$495
Receive an annual $100 air travel credit toward flight-related purchases including airline tickets, baggage fees, upgrades and more.

N/A

0% for the first 15 billing cycles (then 17.24% variable)
$995
Earn 2% point value when redeemed for airfare or cash back through the Luxury rewards program.

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Suze Orman

Suze Orman

  • Suze Orman is an author, financial adviser and motivational speaker
  • Suze has a B.A. in social work
  • Hosted the “The Suze Orman Show”

Lower the interest rate

  • Negotiate. If you have a good credit history and have been making the minimum payment on your card on time every month, you may be able to negotiate a lower rate with your credit card company.
  • Balance transfer. Transfer your debt to a card with a lower interest rate and save on interest. Let your current card provider know that you will have to do a balance transfer if your rate is not lowered and they may give you a better deal because they do not want to lose your business. It is important to not make any purchases on the new card as this will completely cancel out any benefits of switching cards.
Did you know?

If you have a good credit card history and have been making at least the minimum payments per month, then you should not cancel your old cards. They hold a history of your payments that influence your credit rating. All you really need to do is cut them up so that you cannot use them, without canceling your cards completely.

Be sure to make payments

Per the fine print in most terms of conditions, any time you make a late payment, your 0% deal is terminated. Even if you are making regular payments on your new 0% interest rate card, credit issuers will be watching your credit reports to see if you have been late with payments on any of your other cards, not just theirs. This can cancel out the zero deal in some cases as well.

What are credit card companies getting from offering a 0% interest rate?

They want you to make a mistake using the card so they can stop the 0% interest rate and start charging you a 20% or higher rate of interest. Always pay your credit card bills before the due date. If you are mailing in the payment, mail it out five days before it is due.

If you do not qualify for a 0% deal Suze Orman says…

It’s time to start working on changing your credit history so that you can qualify later.

  • Credit score. You can boost this by paying at least the minimum on your monthly payment every month on time. After you have done this for a while your score should start to rise.
  • Debit to credit limit ratio. It is never wise to exhaust your entire credit limit. By keeping a low balance that is a fraction of your available credit limit, your ratio will decline and your credit score should go up. If you do not see it rising you can call up your credit card company and ask them to boost your credit limit — only if you’re sure you can control your spending. By raising this limit your ratio is going to fall because your balances will stay the same.

Working with high interest rates

List your credit cards in order of high interest rate first and low interest rate last. Ignore the balances on all of the cards while you are doing this. Once you have gathered these cards, make sure you make all of your minimum monthly payments on time, but add a little extra to the payment for the card with the highest interest rate.

You can save thousands of dollars in interest charges by pushing hard and making your extra payments as big as you can. Continue this way until the first card, the one with the highest interest rate, is totally paid off. Then start doing the same with the second card in line. Any extra payments that you were able to pay on the first card should be applied to the second one now.

Always keep track of your credit rating until you find that you are able to qualify for a 0% or low rate balance transfer. This is one of the credit card tips you must keep in mind and not forget.

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Pay off your credit card wisely

A credit card debt is unsecured, so if you cannot repay the debt, they cannot come after your assets to repay the money.

  • Home equity line of credit. A home equity line of credit is secured, so if you miss your payments your bank can use your collateral, which is your home, as a payment. You can be forced to sell your home in order to pay off the balance — you should never offer your home as collateral to get out of a credit card situation.
  • Retirement funds. You should also never borrow money using any of your retirement savings either. Some of these loans will be subject to double taxing once you have reached the age of retirement and have different requirements that must be fulfilled where you could possibly lose all of your savings. You may also have penalties and fees to pay as well.

Credit counseling

A good credit counselor will go over your entire financial situation before anything is proposed. You’ll typically be required to go to some classes to get help with money management techniques and to learn better spending habits.

Suze Orman also goes on to say that a debt management plan may be the right thing if you have stopped making payments altogether. A payment schedule will be set up with the credit card companies that is mutually agreed on by both of you. You may not be able to qualify for this plan if your counselor doesn’t think that your credit card debt can be handled within a few years time.

Don’t get ripped off

With the amount of debt problems on the rise it is not surprising that some credit counseling companies are taking advantage of the situation by charging extremely high rates for advice. Be careful when choosing a credit counseling company and make sure that they are fair and honest. You can ask for references if you need any help picking one out.

Also make sure that you only have to pay one fee monthly and not one for each separate credit card. Understand all of the terms of repayment and get everything explained in writing before you go ahead and sign anything at all.Back to top

Compare credit cards

Name Product Filter values Rewards Purchase APR Annual Fee
2x points on travel and dining. 1x points on all other purchases
18.24% to 25.24% variable
$95
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months.
7x points on Hilton Honors purchases, 5x at US restaurants, US supermarkets and US gas stations, 3x on all other purchases
17.99% to 26.99% variable
$0
Earn 75,000 Hilton Honors™ Bonus Points after you spend $1,000 in purchases on the card within your first 3 months of card membership. Rates & fees
5x points on flights booked directly or flights and hotels booked through American Express Travel. 1x points on all other purchases
None (Charge Card)
$550
Get 5x Membership Rewards® points on flights booked directly with airlines or with American Express Travel and 5x points on eligible hotels booked on amextravel.com. Rates & fees
N/A
14.24%, 20.24% or 25.24% variable
$0
An 15 months 0% intro APR period on both purchases and balance transfers, plus zero foreign transaction fees, makes this is a strong well-rounded card. See Rates and Fees
3% cash back on up to $10,000 in the first 12 months, then 1.5% on all purchases
15.24%, 19.24% or 25.24% variable
$0
Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees.
2x miles at US restaurants and on purchases made directly with Delta and 1x miles on all other purchases
17.99% to 26.99% variable
$0
Earn 10,000 bonus miles after spending $500 in purchases on your new card in your first 3 months of card membership. Rates & fees
3% at US supermarkets on up to $6,000 per year, then 1%. 2% at US gas stations and select US department stores and 1% on all other purchases
15.24% to 26.24% variable
$0
Earn a $150 bonus statement credit after you spend $1,000 on purchases in the first 3 months. Rates & fees
3x points on airfare booked directly with airlines; 4x points at US restaurants; 4x points at US supermarkets on up to $25,000 per year in purchases (then 1x points)
See Rates & Fees
$250
35,000 bonus Membership Rewards® Points when you spend $2,000 in the first 3 months Rates & fees
6% at US supermarkets (on up to $6,000 annually, then 1%), 6% on select US streaming services, 3% on transit, at US gas stations and 1% on all other purchases
15.24% to 26.24% variable
$95
Earn $250 bonus cash back after you spend $1,000 on purchases in the first 3 months. Rates & fees
3% cash back on all purchases in your first year up to $20,000 spent, then unlimited 1.5% cash back on all purchases
17.24% to 25.99% variable
$0
Earn 3% cash back on all purchases in your first year up to $20,000 spent. After that earn unlimited 1.5% cash back on all purchases.
5% back in rotating categories up to $1,500 combined each activated quarter, then 1% after that and on all other purchases
17.24% to 25.99% variable
$0
0% intro APR for 15 months from account opening on purchases and balance transfers.
Earn unlimited 1.5% cash back on your purchases
15.24% to 26.24% variable
$0
Earn a $150 statement credit after you spend $1,000 or more in purchases with your new card within the first 3 months of card membership. Rates & fees
3x points on dining and travel after earning your $300 travel credit. 1x points on all other purchases
19.24% to 26.24% variable
$450
Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months.
5% on up to $2,000 each activated quarter on two categories combined (1% after), 2% on one everyday category and 1% on all other purchases
16.24% to 25.74% variable
$0
When you spend $500 on your card within the first 90 days, you’ll receive a $150 cash back bonus. Rates & Fees
2x points on gas, groceries and airlines, whichever you spend the most on each month, 2x points on cell phone services and charities and 1x points on all other purchases
16.24% to 26.24% variable
$0 intro annual fee for the first year ($49 thereafter)
Earn 25,000 enrollment FlexPoints worth $375 in travel after spending $2,000 in the first 4 months. Rates & Fees
18.24% to 25.24% variable
$0 intro annual fee for the first year ($95 thereafter)
40,000 bonus miles after you spend $2,000 on purchases in the first 3 months from account opening.
2x miles on Delta purchases and 1x miles on all other purchases
17.99% to 26.99% variable
$0 intro annual fee for the first year ($95 thereafter)
30,000 bonus miles after you use your new card to make $1,000 on purchases within the first 3 months and a $50 statement credit after you make a Delta purchase in the first 3 months. Rates & fees
12x points on Hilton Portfolio spending, 6x at US restaurants, US supermarkets and US gas stations, 3x on all other purchases
17.99% to 26.99% variable
$95
Earn 125,000 Hilton Honors™ Bonus Points after you spend $2,000 or more in purchases with your new card within the first 3 months of card membership. Rates & fees
5% back at US office supply stores and on US wireless telephone services on up to $50,000 annually (then 1%). 3% on a chosen category on up to $50,000 annually, then 1% after and on everything else
14.49%, 19.49% or 21.49% variable
$0
Save on interest with a 0% intro APR on purchases for 15 months. After that your APR will be 14.49%, 19.49% or 21.49% variable. Rates & fees
2x points on everyday business purchases on up to $50,000 annually, then 1x points
15.49%, 18.49% or 21.49% variable
$0
Earn 2x Membership Rewards® points on everyday business purchases on up to $50,000 with no category restrictions. Rates & fees
4x points on two categories on up to $150,000 in combined purchases annually, then 1x points after that and on all other purchases
16.49%, 20.49% or 24.49% variable
$295
Earn 35,000 Membership Rewards® points after you spend $5,000 on eligible purchases with the Business Gold Card within the first 3 months of card membership. Rates & fees
1.5% discount when you pay early, with no cap on what you can earn back
None (Charge Card)
$0 intro annual fee for the first year ($250 thereafter)
Get a 1.5% discount when you pay early, with no cap on what you can earn back. Rates & fees
2x points on purchases through Amex Travel and 1x points on all other purchases
None (Charge Card)
$0 intro annual fee for the first year ($95 thereafter)
Earn 5,000 Membership Rewards® points after your first purchase on the card within the first year of card membership. Rates & fees
6x points at Marriott Bonvoy hotels; 4x points at US restaurants, US gas stations, and on US wireless telephone and shipping services; 2x points on all other purchases
17.99% to 26.99% variable
$125
Earn 75,000 bonus points after you use your new card to make $3,000 in purchases within the first 3 months of card membership. Rates & fees
5x points on flights and prepaid hotels through Amex Travel, 1.5x points if you spend $5,000 on a single eligible purchase on up to 1 million additional points per year and 1x points on all other purchases
None (Charge Card)
$595
Earn 50,000 points after spending $10,000 and an extra 25,000 points after spending an additional $10,000 on purchases in the first 3 months from account opening. Rates & fees
Earn 2x miles on every purchase made directly with Delta and earn 1x miles on all other purchases
17.99%, 21.99% or 26.99% variable
$0 intro annual fee for the first year ($95 thereafter)
Earn 30,000 bonus miles after you make $1,000 in purchases on your new card within your first 3 months. Plus earn $50 after you make your first Delta purchase in the same timeframe. Rates & fees
2x miles on direct Delta purchases and 1x miles on all other purchases
17.99%, 21.99% or 26.99% variable
$195
Earn 5,000 Medallion Qualification Miles (MQMs) plus 35,000 bonus miles after spending $1,000 in the first 3 months. In addition, earn a $100 statement credit after you make a Delta purchase with your new Card within your first 3 months. Rates & fees
2x miles on direct Delta purchases and 1x miles on all other purchases
17.99%, 21.99% or 26.99% variable
$450
Earn 40,000 bonus miles and 10,000 Medallion Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in your first 3 months. Rates & fees
12x points at Hilton hotels, 6x points on select business and travel purchases and 3x points on all other purchases
17.99% to 26.99% variable
$95
Earn 125,000 Hilton Honors Bonus Points after you spend $3,000 in eligible purchases within the first 3 months of card membership. Rates & fees
1% cash back to your choice of nonprofits, K-12 schools, colleges and religious organizations
16.24% to 22.24% variable
$0
1% cash back to the nonprofits, K-12 schools, colleges and religious organizations of your choice.
1x points on all purchases with 2% point value when you redeem for airfare and 1.5% for cash back
17.24% variable
$495
Receive an annual $100 air travel credit toward flight-related purchases including airline tickets, baggage fees, upgrades and more.
1x points on all purchases with 2% point value when you redeem for airfare and 1% for cash back
17.24% variable
$195
Enjoy unique excursions, privileged access to exclusive events and insider opportunities.
1x points on all purchases with 2% point value when you redeem for airfare or cash back
17.24% variable
$995
Earn 2% point value when redeemed for airfare or cash back through the Luxury rewards program.
2x miles on all purchases
18.24%, 22.24% or 25.24% variable
$0 intro annual fee for the first year ($89 thereafter)
Enjoy 70,000 bonus miles after spending $5,000 on purchases in the first 90 days.
15.24% to 26.24% variable
$0
Build your credit with no fees: Apply if you're new to credit or have a fair to good score.
3% back on travel and entertainment and 2% on dining up to $500 combined each billing cycle, then 1% after that and on all other purchases
18.49% to 25.49% variable
$0
Earn 3% cash back on travel and entertainment and 2% at restaurants on the first $1,000 spent on purchases each billing cycle (then 1%). Earn 1% on all other purchases.
See terms
See terms
The First Access Card is a true Visa® credit card that does not require perfect credit for approval.
1% cash back on all purchases or in categories based on Credit One Bank’s discretion
20.24% to 26.24% variable
$0 to $99
Get 1% cash back rewards on eligible purchases.
Get 1% cash back rewards on eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV.
20.24% to 26.24% variable
$0 to $99
Get 1% cash back rewards on eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV.
Get 1% cash back rewards on eligible purchases and double cash back rewards at the NASCAR.com Superstore
20.24% to 26.24% variable
$0 to $99
Get 1% cash back rewards on eligible purchases and double cash back rewards at the NASCAR.com Superstore.
24.9% fixed
$0 to $99
The Indigo® Platinum Mastercard® Credit Card is specifically designed for those with less than perfect credit.
9.99% fixed
$48
This secured card can help you rebuild your credit with an initial deposit of $200 to $1,000.
19.64% variable
$35
A secured Visa® credit card that helps you build your credit quickly.
1% cash back on all purchases
20.99% variable
$0
Designed for college students to build credit history and earn rewards.
25.24% variable
$0
Designed to help build credit history with no deposit required. Apply if you're new to credit or have a fair to good score over 650.
N/A
14.74% variable
$39
No minimum credit score and no credit history required.
N/A
10.74% variable
$49
Build or rebuild your credit with this secured card.

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