The twilight zone?

I was watching one of the cable channels (either CNN or CNBC) and I caught a Suzie Orman interview. You should all know Suzie. She is a well known, and respected, personal finance guru. But I heard her give some advice that is absolutely backwards.

She said that in times like these you need to have cash in case you get laid off. Now that in and of it self I do agree with. But she suggests you fore go paying off you credit card balances and save the cash instead. Even in tough times like this that is short sighted thinking.

Any cash you have is most likely making less than 3% interest. I cannot imagine any credit card with an interest rate anywhere close to that. The name of the game is to have your money work for you. If you are borrowing at a rate higher than you're saving, you are playing a losing game.

If you are carrying credit card debt and have no cash, you are already in a bad position. Stay focused and applied at work so you can hopefully avoid a layoff and start getting your finances in order now.

At today's mortgage rate you should refinance the house if you can, pay off those credit cards, and starting living within your means.

You can do it.