If you've been reading my Blog you know I've been sounding the alarm about HELOC's being reduced or taken away and more recently credit card companies reducing credit lines arbitrarily whether you have a good payment history or not. And the amount of money that you make has absolutely nothing to do with the reductions in credit. As I said before, if you've been hit with this situation, check your FICO score because it will, most likely, take a hit as the "credit utilization" portion (a big one in the scoring) could go from 30% to 100% utilization, as it did for a friend.
The other day CNN reported on this situation, specifically with American Express admiting that they were reducing all credit lines. And today a friend just told me she was watching Suze Orman this morning and she was talking about this, also. She went so far as to say we are going back to a cash and carry society, that credit will be a thing of the past. I wonder how MC and VISA feel about that comment considering they just went public a short while ago and she's talking about their billlion dollar businesses disappearing!
So how will this all play out in the economy? Anyone with a crystal ball?
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2 comments:
I just had to get this out of my system. The economic crisis is more of a political and media crisis than anything. And no I'm not picking sides. Bush, Congress everyone is at fault here...BUT the overcoverage of the "crisis" by 24 hour news channels, blogs, newspapers and magazines.
Our parent made it through the 70's paying 18% mortgages and having to wait in line for gas and so will we.
Our great grandparents made it through the Great depression and they were one of the most incredible generations ever on this planet.
This is a great time to reevaluate your own personal goals, dreams, career and finances.
Some of the strongest companies today, yes there are strong companies out there, were started during times of economic recession.
Times like these force cost cuts and raise up voters to finally speak up and write/call/email their elected officials and tell them: enough is enough, you broke it, you fix it...without more of our money.
I could go on but my point is this, What is going on in the economy is a normal and healthy part of the economic cycle and the longer we put off the natural correction the longer and harder the correction will be.
Keep calm, don't buy in to the doom and gloom and go out and do what you do everyday to make this conutry great.
Absolutely, I agree! I remember waiting in those gas lines and the President putting a national freeze on wages we survived. The media creates a frenzy of gloom and doom and that does nothing but create the exact things that will make the situation worse.
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