Suze Orman: What you should never do with your money
They say talk is cheap -- unless, that is, it's Suze Orman doing the talking:
So many times in life you're told when it comes to your money, do this, do that, do this.
Well, this morning, we're going to give you three things that you are never, ever to do when it comes to your money.
First, you are never, ever to co-sign a loan.
Don't you think if somebody needs you to co-sign a loan, what that means is that the financial institution isn't going to give them a loan 'cause they don't qualify? They don't qualify -- why are you doing this? When you co-sign a loan, it is YOUR loan. You are personally responsible for it.
And if the person who's supposed to be making payments on it isn't making payments, you are not going to know. It will ruin your credit score. So under no circumstances are you ever to co-sign a loan.
Do you hear me?
Next, you are never, ever to take a loan from your 401(k).
401(k)s are protected against bankruptcy. If you're doing so much and you're in so much debt that you have to take a loan from a 401(k), that means you're close to bankruptcy. You may end up having to claim bankruptcy, and your money would've been protected in the 401(k).
So you are never, ever to do that.
And last but not the least, student loans.
Student loans are the most dangerous loans out there. They cannot be discharged in bankruptcy. So you are never to miss a payment of a student loan. It is your number one priority.
Never miss a student loan payment!
And really, when you sum it all up, just don't do anything that you don't understand. And that will keep you out of trouble.
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