Is the 60% cut in available credit by 2010 coming true?

I had blogged back a few months ago about reading an article that cited that that “industry experts” were saying that 60% of available credit was going to be cut by 2010. At the time I did not see anything on my personal accounts. I have been letting my credit cards “cool” since no one is offering good balance transfers deals that can compete with the Equity line prime rate so I have not been carrying any CC balances except for one, Capital One who offered a deal that made sense for me after I did the breakeven analysis.

Anyway, I got new ATT(Citigroup) cards in the mail yesterday, I thought I would jump on and see if there were any offers, well they cut my line by 60% (rounded up,59.78%). AND there are no balance transfer deals being offered at this time. So I guess Citigroup is getting the idea of deleveraging and cutting risk in this environment. So being curious I jumped on Chase to see if it happened there as well. The credit limits there have not changed and they are still offering balance transfer deals, the deals don’t make sense for my situation but they are still offering them.

So beware, if you are counting on credit cards to fill gaps or perhaps looking to tap them in case of emergency, be checking them, I would say monthly, to make sure what your credit limit is and to make sure the “cushion” you are looking for is still there.

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~ by debt2dreams on June 22, 2009.

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