We have opinions about Suze Orman. We think, for example, that she is a very savvy marketing expert. We think someone is very good at doing her hair. We hear she is a delight on talk shows.

It’s a shame that her math skills seem to be so sadly wanting.

A few weeks ago, we got this link to her latest flip-flop regarding paying off debt. If you haven’t been paying attention to Suze Orman on the topic, you are probably less confused about this than those who have. Those who have been paying attention to us (and that’s very nice of you, since our hair isn’t nearly as pretty is Orman’s) know that we’ve always said the same thing.

Pay off your credit debt. Now. Yesterday. Do it.

Orman’s waxed back and forth on this, and now, in the midst of a financial crisis, she’s decided that the smartest thing you can do is sock away money into a savings fund. Her logic goes that when you’re in serious financial trouble, you’re going to need that emergency fund more than you need good credit.

Sounds fine. Except for the part where you’ll have a hell of a lot more money to put into that savings account if you pay off the credit cards first.

This is the part where we do the math for you.

Let’s say you’ve got a $20,000 balance on your credit card. Your minimum payment is $500. We’re using CNNMoney credit card calculator for this one to calculate what happens APR-wise to that debt as we go along. 

On Suze’s plan, here’s what happens.

You pay your minimum payment of $500 every month. Your credit card company keeps charging you the APR rate. In 30 years and 9 months, you’ll have paid it off. Meanwhile, you set aside $150 every month, instead of putting it toward your credit card, into a savings account.

30 YEARS, okay? that’s the time it’s going to take you to have a kid, watch it grow up, go to college, get married, and have a kid of their OWN. And you will STILL be paying off that credit card.

Not to mention the fact that by the time you pay it off, you’ll have paid $27,466 in interest.

Pay attention to that.

Your credit card was $20,000. Your interest paid was $27,466.

You just paid OVER TWICE THE ORIGINAL DEBT.

Now do it our way. Instead of your minimum payment, pay just an extra $150.

Got that? Instead of $500, pay $650. This is not that extreme.

Guess what happens?

You pay off the credit card in only 3 years and 5 months.

You only pay $6,477 in interest.

Let us compare where you are in 30 years.

In 30 years under Suze’s plan, you have JUST paid off the credit card. You have paid a grand total of $47,466. And you have put $54,000 in a savings account.

In 30 years under our plan, you have paid off the credit card long ago. You have paid a grand total of $26,477. And since from the 3 year, 5 month mark onward, you put $650 in your savings account (because you didn’t have to put it toward a credit card anymore), your savings has $207,350 in it.

Let’s compare again.

Suze’s plan: You spend $47,466. You save $54,000.
Our plan: You spend $26,477. You save $207,350.

Why on earth would you not pay off your credit card sooner?

Tune in for the next post, where we’ll tell you where that $150 is coming from, anyway.