Suze Orman says: Switch to a credit union!
Filed under: Banks
In an interview with KMBC's Donna Pitman, First Lady of Personal Finance Suze Orman trashed the big banks for inexplicable fee and interest rate hikes on consumers -- and offered a ringing endorsement of credit unions."Don't get me started with these credit card companies, these banks -- it's like, 'What are they thinking?'" Orman said.
"Here's the answer: Credit unions," she said. "They are different than banks. Most banks are owned by their shareholders. They're responsible to these shareholders and it happens to be on the stock exchange, so anything to increase earnings and profits. Credit unions have members. They're responsible to the members. So, many credit unions -- not all -- are giving you no balance-transfer fees, low interest rates. They're being ethical and honest."
Another key advantage to working with a credit union instead of Chase, Bank of America, or Citi, is that most credit unions are not staffed by the dumbest people you will ever meet in your entire life -- which matters when your financial well-being is on the line.
To find a credit union in your area, visit the National Credit Union Administration's credit union locator.
MoreOli Scarff, Getty Images
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Reader Comments (Page 1 of 1)
11-04-2009 @ 2:16PM
Rick said...
Suze is a charlatan.
She fails to tell you to beware of the cross-collateralization agreement that most credit unions impose on unsuspecting customers who utilize their credit offerings. These agreements allow the credit union to collateralize credit cards and other "unsecured" debt with checking/savings accounts, CDs, autos and any other assets that are held at or financed through the credit union...nothing fair and ethical about sneaking these debt traps into your supposedly "unsecured" liability agreements!
In the unfortunate event of a bankruptcy, you will not be able to discharge unsecured debts owed to a credit union, you will instead forfeit any assets held at/financed through the credit union. That's right, they will repo your car or seize your CD/savings to satisfy the outstanding debt on a credit card. Bankruptcy means nothing to them.
Funny how Suzie the "First Lady of Personal Finance" fails to warn you of this major pitfall!
Reply
11-13-2009 @ 2:50PM
Shawn J said...
Rick,
What percentage would you assign as the value of "most"?
If an agreement has to be signed would that constitute "impose" and "unsuspecting"?
The vast majority (I would assign 90+% to statement) of credit unions are very dedicated to helping their members become financially stable. If that means that the credit union gets creative and tries to consolidate most if not all of the members higher interest rate unsecured debt into a much lower interest rate secured loan how is that a "debt trap"?
It is unfortunate that someone has to go bankrupt, you are right there. But I guarantee that a credit union is much more proactive in helping people not have to by taking an interest in them and counselling all along the way. I also gurantee that a credit union would try very hard to work out any arrangemets to keep the persons savings, car, house, etc. in the members hands.
"Bankruptcy means nothing to them"? I can't for the life of me understand what you mean by that I can only assess that you have no clue what you are talking about. Bankruptcy is on the rise due to the lack of a persons financial institution taking an interest in the person's finances. It's stems from the ignorance of lenders who are only interested in making as many loans or issue as many CC's as possible to make their books look good with no regard to the ability to repay.
Credit Unions are not in those groups, they are and will be the last bastion of financial responsibilty.
You are obviously biased for some reason. I have spent time in both the banking and the credit union indistries on the lending side and i can tell you that a Credit Union is the only way to go!
11-04-2009 @ 6:48PM
Don said...
Keep in mind that Suze Orman is an entertainer. I wouldn't take her advice to the bank. Ask the 60 year olds who she suggested not pay off their mortgages with their 401ks. Where are they now?
Reply
11-13-2009 @ 11:26PM
Banker said...
what a f.. insult to say that banks are staffed with the dumbest, How inconsiderate to the fact that its a job and like all jobs duties are laidout.Most of the "dummies" have no control over policy and procedures.
Reply