Susan Lynn” Suze” Orman, is an American financial advisor, author, and podcast host.

From her financial advice, she created the Sze Orman Show, which ran on CNBC from 2002 to

2015. In 2015, she was featured in CBS Sunday Morning, an American television network. She

talked about three things to never do with your money.

In the episode, she advised to (1) never co-sign a loan. If a person needed you to co-sign

their loan it just means that the financial institution denies that person a loan because they don’t

qualify. When you co-sign a loan, it is your loan and your responsibility. If the original owner of

the loan fails to pay, you will be the one liable and your credit score will be decreased.

Orman’s second advice is (2) to never take a loan from your 401(k). A 401(k) is a feature

of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to

individual accounts. A person might consider taking a 401(k) loan, it means that he/she is under

debts and close to bankruptcy. A person doing so might end up getting filed by the US Court as

proof of claim in bankruptcy and your money in your 401(k) will not be protected.

Suze’s last advice is (3) to pay your student loans. Student loans are one of the necessary

loans in the United States but extremely dangerous if not paid. The total student loan debt in the

United States reached $1.1 Trillion because of its high-interest rates. In this case, it is crucial to

never miss a student loan payment.

On a personal note, only the first advice was applicable to me, since the other two only

affects US citizens. Although irrelevant, it is still worth sharing with families and friends that

live and those who consider living in the US. The first advice talked about not to co-sign a loan.

Filipinos are used to requesting and taking favors from families and close friends. The video

taught me to be wise and decline any requests for a co-signed loan. This is because the bank or
the financial institution denied them a loan because of factors, such as low balances in account

and low salary, and needs a co-signee to continue. In this case, I learned not to agree on those

terms as in the end I will be the one that will be in debt and liable.

The main take away of this video is to never sign a contract that is money related that you

don’t know or better yet, understand the terms and conditions before making a decision.