Credit Card lines getting slashed?

I have been reading that 60% of Credit Card lines could evaporate by 2010. Now not all people are treated the same, some may not be affected at all where others will completely get cut off. Personally we have some HUGE credit lines that these companies would just give us and then we would see bump after bump so they would continue to increase. Should those get knocked down, probably, will they, I don’t know since we are north of 770 credit score they just may leave us alone. It really doesn’t matter one way or the other, since we carry numerous cards with high credit available but only use them if they have a balance transfer deal that makes sense. This helps us pay down our equity line, in which we then move the unpaid portion, after we only pay minimum payment until it comes due, when this happens we use our equity line to pay the remainder balance off so we don’t start getting charged the normal rate. With the lack of “good deals” being offered these days we pretty much have empty cards sitting around. We do use our Discover Card for everyday purchases and pay the total amount due each month; this is how we keep track of our spending.

I believe everyone should take a look at their credit cards and evaluate where you stand, some may be dependent on credit cards for living expenses. If you are, please email/call; let’s see what we can do to get you out of that cycle. Remember the Lay-off contingency plans, if you will need money to survive if you go into a lay-off we need to make sure there is an emergency fund, equity line, or credit card that you can draw from until another job can be found. Now you could have one of these or a combination of all three, again if you need help evaluating where you are at with this, please don’t hesitate to call/email.

Has anyone see their credit lines being cut drastically? I was surprised that our Capital One card was cut from 20K down to 14K, but that was probably over 2 years ago and at the time I had lots of balance transfer deals hanging out there. I assumed that was the reason for the drop and said fair enough. Isn’t it funny how they did that way back when and now I haven’t heard anything in the news about Capital One, I guess being proactive is a good thing. Suntrust had done the same thing to our Equity line, complete cut-off last July, that was shocking but I went through the appropriate steps to get it opened back up.

So be aware of your credit lines and make sure if something changes that it doesn’t affect you and your plans, if it does, another plan needs to be formed in its place. Diligence is key in this environment; you need to take responsibility for your own financial situation since we aren’t going to have any govt bailouts heading our way.

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~ by debt2dreams on March 23, 2009.

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