So I know Suze Orman doesn't recommend reducing credit lines, but doing so actually makes me feel better. To me, its a way of helping me to control my spending and forcing me to not rely on credit cards.
So I called up one of my card's today and reduced the credit limit to just above my card balance. Then I did a balance transfer to help pay off my other card at a lower interest rate. Once that processes, I'm going to cancel my other card. So that is reducing my available credit by $17K.
Perhaps it will hurt my FICO score but at this rate I don't really care. I don't want the opportunity to get into more debt.
If it lowers my FICO score then I know it'll reduce the chances we'll be able to get a good rate on a car loan or any other sort of loan - so maybe that isn't a bad thing. A bad interest rate will make me less enticed to rationalize another loan.
Maybe this is a mistake? But if it is, it feels really good and reassuring that I now have a lower credit line meaning I'm less likely to get into much deeper trouble.
Reducing Credit Lines
June 22nd, 2009 at 01:20 pm
June 23rd, 2009 at 01:10 am 1245719447
But it does not good, if I cancel a card than the others increase my creidt limit, if I lower my limit three months later they raise it again.
June 25th, 2009 at 04:53 pm 1245948834
We all have all the wisdom we need inside of us.
I know I have not always done what seems like excellent advise for everybody else and I have no regrets.
One word of caution now, ALWAYS evaluate your motivation, it helps you feel better. But why?
Where is the lack of self confidence coming from?
Can you imagine yourself as a more self confident person that doesn't need to cut himself access?
The lessons learned might be beneficial in more ways than one, not only financially...