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Credit Cards Do Not = Your $'s

Updated on January 28, 2011

Credit Card Limits Are Not Your Bank Dollars

It's time to look at credit cards in a new light. We need to rethink how we view the credit card limit amount on our accounts. Just because the plastic card has a color ranking: silver, gold, platinum, titanium, equivalent to a dollar range, does not mean more money in your pocket.


1). My grandmother just paid off a charge card with an $11,000 credit limit granted to a person nearly a century old. How did this happen? She lives in senior housing and owns no car nor home. What was used to cause this limit to increase over the years? She diligently paid her minimum amount due every month and increased payments to end the control of the debt over her. Since she was sending in a payment every month, her credit card limit was increased.

When the credit card company computer system recognized consistent monthly payments from a customer, it was programmed to increase the credit limit. Do you think my grandmother asked for an $11,000 credit limit? No! She doesn't know how it happened. If she had asked a representative at the card company, her account would have been reviewed and denied. She's retired and living on a fixed income and was carrying a gold card. She was able to payoff her debt and no longer live with the burden of the balance nor the option to run her debt up to the credit limit.

Dollar Amount.....Not Yours

The credit card limit does not define your worth. Whether the card has a limit from $300 - $50,000, it's not your money to spend nor save. If it's not in your bank savings account, or investment portfolio or stuffed away in bottles under planks in your home or wherever you think you might layaway money, the dollar amount on your plastic card is not yours. It's VISA, Discovery, Mastercard, American Express, etc.

You may have a tendency to think of the credit limit as savings. Not! The card company's marketing and advertising promotions imply strongly that the limit is spendable and easily available for use. Do not be deceived, the limit is, but the dollars aren't yours.

Rethink, re-program, face reality you're spending someone else's money everytime you "swipe" your credit card. Release the burden by telling yourself the truth -- This is not mine, I'm borrowing money at an annual percent rate so a company can make money every time I chose to use it without considering whether I can pay-off the balance at the end of the month.

In the past 10 years, my credit cards have been reduced from six to one. I was guilty of buying into the system. Like everyone else, it was fashionable to flip out a credit card holder from your wallet to make a payment. If the card was gold or platinum or titanium, it represented a status symbol. I have learned that status quo does not keep money in my pocket. Controlling my spending spree does.

Out of Control

It's gotten out of control. Every retail store you walk into offers an additional percent off your purchase if you open up a credit card with them. Think about it. The store is offering a 10% discount if you fill out the application. If it's approved, you'll be charged 15% - 29% APR. Who wins? The store! They'll not only get that 10% back, but as long as you purchase more products and pay on the account, they make more money. The more money they make the more you lose at an out-of -control amount far beyond the original 10% discount. JWhen the 10% offer is made, just say, " No!"

Credit card limits are not your bank dollars. The more you spend the more they set goals and higher financial strategies to get your money. Take back control of your money. One-by-one, step-by-step, we can change this economy around by getting out of debt. In return, you'll have "more money than month". In other words, you won't run out of money before the month is up.

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