AmEx slashes family's credit limit

AmEx slashes family's credit limit

There are 71 comments on the WOOD-TV Grand Rapids and Michigan story from Nov 11, 2008, titled AmEx slashes family's credit limit. In it, WOOD-TV Grand Rapids and Michigan reports that:

As Americans become more reliant on plastic to get by during this economic slump, credit card companies are cracking down on their usage.

Join the discussion below, or Read more at WOOD-TV Grand Rapids and Michigan.

First Prev
of 4
Next Last
fhs

Custer, MI

#63 Nov 12, 2008
GR Independent wrote:
<quoted text>
This is a very good point. However, how many people are (a) victims of circumstance, compared to people who (b) just don't know how to live within their means? Betcha group (b) is many times larger than group (a).
I'm sure your right about that - most people do not live within their means. I just felt that this particular person who was on the news was being criticized without any of us knowing her situation.
Budone

Saint Johns, MI

#64 Nov 12, 2008
AmEx DOES allow credit to roll over month to month now.

When I joined a year ago, the purchase had to be over $600 and I had to approve it being on credit.

In August I received a notice that the limit was now $200. And this month in order to give me 'better Options and Control' on my account, it was lowered to $100. Sheez
Husband

Grand Rapids, MI

#65 Nov 12, 2008
When it comes to living within your means there is a difference between paying your bills and then something happens; car repair, lost job, etc. There are positive uses for credit and by no means is she trying to say that she lives off of credit.

She does not have the mortgage paid off, she pays it every month like millions of other Americans.

Having to pay for child care, insurence out of pocket, bills, and college debt does eat up alot of anyones money. It is great to see those out there that where handed things in life or never strived to better themselves belittle someone so easily.

I have 2 Amex cards. One droped the limit from 7,000 to 2,600 (Balance was 0 and is minimal anyways) the other has about 350 on it and the APR went from 8.9% to 28.8% with no notification, electronicly or otherwise.

I agree that many in America live a champane life on a beer budget, but just as many people that need credit for short term are getting hit over the last few months and the coming months are going to be stifled and this will harm the economy.

It is lofty to think of paying cash for everything but it is not realistic. You would not own a home for 30+ years and waste countless thousands in rent that could go into building equity in your home.

Cars are a different story and most should be able to pay cash in some way, shape, or form.
Batch 37 Pain Is Good

United States

#66 Nov 12, 2008
Let me get this right. Amex wants payment from its card holder in one month and now they want a handout from the govt(yours and mine money) too? I do not have AMEX put I do not want to pay them.
desert rat

Marietta, GA

#67 Nov 12, 2008
Amex is doing this globally. Basically if you carry a balance, your new credit limit is your balance, therefore not allowing you to use the card any longer.
Sure

Denver, CO

#68 Nov 12, 2008
AmEx is positioning themselves for a taste of the $700B bailout monies, at your expense.

Also, when they cut you credit limit, you credit FICO score goes down because it is based on your debt/credit limit ratio. You just became more of a credit risk, regardless of past history.
James Moore

Colchester, CT

#69 Nov 30, 2008
AMEX has joined the ranks of the scared. I had my finances all worked out with my credit limit of 5K. they cut it to 800 and if I cancel and go to visa they will pull my skymiles. All for 95 bucks a year in fees.. and i have to kiss their ass??? Hello VISA...

Since: Nov 08

Allendale MI

#70 Nov 30, 2008
Wait a minute! She states that she has a great job, her husband has a job, they have no mortgage, but she STILL sees the need to have a TEN THOUSAND DOLLAR credit limit??? Sounds to me like someone is living WELL beyond their means! If they are both working and don't have a mortgage to pay, there should be no need for credit cards, especially with limits that high!

Since: Nov 08

Allendale MI

#71 Nov 30, 2008
Whoops...my bad! I just reread the story again after reading some other comments on here. I misunderstood when she said she HAD a mortgage and was all paid up! Time for me to get some sleep obviously! Sorry about that!
janetn

United States

#72 Nov 30, 2008
The whole country is going to have to learn to live within their means. The easy credit party is over. no more treating your home like an ATM machine. no more relying on credit for emergencies. no more shop till you drop mentality. Wages have not kept up with inflation. You cannot live the same lifestyle you did ten years ago on the same income. Falt screen TVs and trips to Florida are not a national right. News flash banks and credit card co's are out to make as much money as possible. They are not your friends. When you are no longer a potential cash cow or they are hurting they will and are jerking your credit. Get over it!

The banks are insolvent, they have to make the balance sheets look better hence they are cutting credit, get over it folks its the new normal.

BTW it is possible to live debt free, including owning your home - mortgage free. It takes hard work and sacrifice. Not something our culture is used to. Belive me you sleep a whole lot better knowing whatever may come you will still have a home. Its nice to have the extra money that used to go to service debt available to buy a few things -cash. Its also nice to have an emergency fund for those unexpected expences. Living paycheck to paycheck is not a nessesity. You can live comfortably on very little money once you get out of the debt trap.
Old Rocker

Lowell, MI

#73 Dec 1, 2008
janetn wrote:
The whole country is going to have to learn to live within their means. The easy credit party is over. no more treating your home like an ATM machine. no more relying on credit for emergencies. no more shop till you drop mentality. Wages have not kept up with inflation. You cannot live the same lifestyle you did ten years ago on the same income. Falt screen TVs and trips to Florida are not a national right. News flash banks and credit card co's are out to make as much money as possible. They are not your friends. When you are no longer a potential cash cow or they are hurting they will and are jerking your credit. Get over it!
The banks are insolvent, they have to make the balance sheets look better hence they are cutting credit, get over it folks its the new normal.
BTW it is possible to live debt free, including owning your home - mortgage free. It takes hard work and sacrifice. Not something our culture is used to. Belive me you sleep a whole lot better knowing whatever may come you will still have a home. Its nice to have the extra money that used to go to service debt available to buy a few things -cash. Its also nice to have an emergency fund for those unexpected expences. Living paycheck to paycheck is not a nessesity. You can live comfortably on very little money once you get out of the debt trap.
Couldn't have said it better. We have lived our entire lives with no debt except for the mortgage on our house and lake property up north. We paid off the lake 13 years ago and paid off the home 9 years early. With no other payments it can be done much easier than you might think. With no debt at all, We saved everything after that and I retired at 58. My choice.
We have a credit card but rarely use it. Only for convenience. When the bill comes, we pay it in full, immediatly. If they want to lower our credit limits, who cares. I don't care what my FICO score is since we will never borrow money again as long as we live.
We did this on one income,(less than 6 figures) My wife was a stay at home mom.
It's just like you said...Live within your means.

Life is good.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker
First Prev
of 4
Next Last

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Jenison Discussions

Title Updated Last By Comments
Local News Women (Apr '09) Fri Morningwood 2,931
News Gov. Rick Snyder makes appointment, reappointme... Fri Indict arnon milchan 1
News Michigan lawmaker proposes bill banning Sharia Law Jun 18 Muzzie confusion 12
Quote of the Day (Feb '08) Jun 16 Kelly Joanne Cannon 479
Old things and places we remember from the Gran... (Feb '09) Jun 16 A Commenter 1,176
The Geek Group Jun 15 Redrider87 3
News Teen shot by police on probation for earlier sh... May 31 About time 1

Jenison Jobs

More from around the web

Personal Finance

Jenison Mortgages