newjerseynewsroom.com

BY JOHN SOLTES

NEWJERSEYNEWSROOM.COM

Suze Orman, the personal finance expert who has built an empire out of tough-to-swallow advice to debt-riddled consumers, recently unveiled a new prepaid MasterCard, her first financial product. The new venture is in stark contrast to Orman's history as a TV host and bestselling book writer.

Orman promises that the card will help consumers stay debt free because it's not a credit card. Enrollees in the program pay $3 per month for access to the plastic, which comes emblazoned with Orman's stamp of approval.

After activation, consumers can add money through bank transfers or cash deposits, and then use the accrued money for a variety of purchases. "You can only spend what you load on it," according to Orman's official website.

The FDIC-insured card can be used to pay bills and get cash at ATMs. "What is the approved card going to cost you?" Orman states in a promotional video. "There is a monthly fee. That fee is $3 per month. If I could, trust me, I would give it to you for free. But there's the cost of the plastic, all of the technology behind it. It is expensive. ... I think it's more than worth it."

The Federal Reserve reports that "payments made with prepaid cards (which include private label, general purpose and EBT cards) increased at the fastest rate (21.5 percent per year), reaching a total of six billion transactions in 2009."

Those transactions totaled approximately $140 billion.

Besides the monthly fee, Orman's MasterCard stands to make money if consumers rack up a number of potential fees. Business Week reports that only one monthly call to a customer service representative is included in Orman's new venture. Extra calls per month are $2.

On Twitter, many financial experts have criticized their colleague for making money off the prepaid card.

Orman is currently the host of "America's Money Class" on Oprah Winfrey's new television network, OWN. Her book of a similar name ("The Money Class") recently debuted in paperback.