Reduce credit lines...

Hi bassn
Following the recent US slowdown, almost all credit card companies have lowered the credit limit in order to avoid risk. Lowering your credit limit will not affect your credit score much, if you restrict spending on your credit cards to 30% of your credit limit.

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Read my story in the "stories on winning from debt" forum. The co. you are asking about is not rated by the BBB. Be careful and choose wisely.
Julia1

i understand your pain, all my cards have lowered the available credit and one even closed thier program. I had about 30% of my credit used at the time (replaced furnace) and when they lowered my cards im more like at 60-70% now so im sure my credit is going to suffer for this until i get it down again. I made sure that i told them im canceling these cards after i get them paid off. I understand why they are dong it but it is effecting my credit even though i have been a "good girl" with them. It makes me so angry!!!!!!!!!

Just because you were given credit doesnt mean they cant take it away. Credit cards are meant for short term use not for developing debt. Yes it does lower you fico but so does having a lot of debt. Banks gave out way too much credit and all they are doing is setting lines up to match peoples income so people dont live above there means like they have been.

Wiseguy, all though you do make a point but however, this isn't a site where we bask each other for our past financial mistakes.?? This is one of the few places that we can come and get help and try to get out of it.?? Try to pick a better life so we can get out of the cycle.
??

There are a couple ways to get out of debt. One, if you are fortunate enough to have home equity use it, its a low rate and will wrap it up for, just cut ur cards up. Two, talk to your banks, they have programs called fixed payed where they do have to shut your card down but your payment is reduced and it gets the debt paid in 5 years. Lastly there is always debt management and while it does hurt your credit it gets you debt free.

We are fulley aware of all of those options.?? Thanks for chiming in.
There is a seperate forum that talks about debt settlement and debt management.?? If you are pretty knowledgable in those areas you should sign up and offer your advice.
I'm a loan officer and work for an attorney that does loan mods.?? I do my best to offer my knowledge to help others.
??

Yes they do have the right to lower ur credit limit, It will hurt your score cause it will lower ur credit limit and raise ur credit debt.

yes they have the right to do that, until new laws to try and change something (and bring even more government regulation that is sure to fail)

just because they have the right to doesn't make it right when they do.

of course it isn't right, but they make the rules unfortunately

it doesnt make it right i agree fully.?? But before too long none of us will be able to make any decisions for ourselves because we wont be "responsible" enough to control our on lives, we wont be able to just buy stuff at the store because it may be unhealthy, we wont be able to make health care decisions for our children, im not trying to scare anyone, but we have opened the doors to it know and soon they will be able to control everything in our lives because they need to protect us from our selves.?? They make it out to be in our own best interest.?? people need to wake up and smell the roses.
they can do what ever they want whenever they want because everyone just allows them to.?? I feel bad for my son in what for world i have brought him into.?? Look at what we are going through can you imagine what things will be like for our children??? Im scared for him.

+1

even though they have the right doesn't make it allright!!
most people live beyond there means and that's o.k. what we have to be careful of is how far beyond. does anyone, especially hard working family people that happen to make under $25,000 it can be tough waiting until you land that amount of income where "living beyond your means" doesn't apply as much. anyway, it's practices like this the cc companies do that makes the credit industry situation worse because the people who are not bums, that simply gave up paying or had no intention of paying, are lumped into a similar category and more financially strained with reduced credit availability, higher interest, closed accounts, and increased minimums. If some of the actions the cc companies take were limited to say 90 days to guage your responsibility than some people's finances would not get out of control as much. I'm all for a penalty, but these drastic changes leave few with out much choice. When you fight so hard to make timely payments,eventhough you have high balances, you should not have a situation placed on you that is unjust, especially with high balances and multilple cards. It's one thing to have 1 card's credit reduced and/or interest raised, but imagine the toll when 5+ cards do similar things around the same time, it truly kills your ability to maintain.

Sorry for the rant---got caught up!

even though they have the right doesn't make it allright!!
most people live beyond there means and that's o.k. what we have to be careful of is how far beyond. does anyone, especially hard working family people that happen to make under $25,000 it can be tough waiting until you land that amount of income where "living beyond your means" doesn't apply as much. anyway, it's practices like this the cc companies do that makes the credit industry situation worse because the people who are not bums, that simply gave up paying or had no intention of paying, are lumped into a similar category and more financially strained with reduced credit availability, higher interest, closed accounts, and increased minimums. If some of the actions the cc companies take were limited to say 90 days to guage your responsibility than some people's finances would not get out of control as much. I'm all for a penalty, but these drastic changes leave few with out much choice. When you fight so hard to make timely payments,eventhough you have high balances, you should not have a situation placed on you that is unjust, especially with high balances and multilple cards. It's one thing to have 1 card's credit reduced and/or interest raised, but imagine the toll when 5+ cards do similar things around the same time, it truly kills your ability to maintain.

Sorry for the rant---got caught up!