Too Much Credit – Knowing When You’ve Bit Off More Than You Can Chew

Burning Money

This is what happens when you overspend with your credit card. Put out the fire!

I received an email from a friend the other day about his credit limit that made me very happy. Here’s what he wrote (typos and all):

So I have 3 credit cards (4 depending if my debit card counts because sometimes i get charged credit when the place doesn’t have debit option).

I’m don’t have the self-control I’d thought I’d have, at least when I’m drunk, and I want to finish off paying the balance off once of the cards and then cancel it.

How would this affect my score? To be frank, the limit on that thing is 6K, and the other two are 2K and 5200. I want to cancel the 6K one because it’s dangerous for me to be having that.

Separately, can you ask to have your credit limit reduced? Id like to knock down the 5200 to 3k.

Any insight would be appreciated.

Many of my posts promote credit card usage and credit line increases, BUT it only works if you use it responsibly. That means if you tend to overspend, you should take steps to fix these habits before playing with credit. As my friend mentioned above, it is dangerous to hold credit if it gives you a false sense of wealth. You are borrowing when you are using credit. Any potential rewards you may get from credit cards vanish immediately once you start getting into debt.

I’m happy that my friend can see past the credit card rewards and admit he has a hard time controlling his credit card usage. Frankly, this is a problem that plagues young people. It’s easy to go out and have fun, and then deal with the aftermath the next day.

Here are some of my thoughts.

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Gangnam Style Personal Finance (Guest Blog Post)

Hey everybody, check out a guest blog post I did for Budgets Are Sexy!

I thought I’d leverage my Korean heritage and put my own personal finance spin on the whole Gangnam Style craze.

I’m particularly proud of the intro. Here’s a teaser:

This dance is the hottest thing since Samsung smartphones. In the past month, it’s been on Facebook walls across the internet, all over the WSJ, and lauded by the auto-tuned voice of this generation — T-Pain. If you haven’t seen it already, it’s time you caught up with the rest of the world and take a peek.

Why am I talking about a Korean music video on a personal finance blog? What in the world does this have to do with money?

Ah-hah! I set you up there. It has have everything to do with money!

Anyway, go check it out at The author of the blog, J. Money, is a friend/mentor of mine who helped give me some guidance on the direction of this blog. His personality-filled posts definitely influenced this blog.

Let me know what you think of the post!

Gangnam Oh Yeah

This is how I felt when I got the green light to write this guest post.

I Just Instantly Added 12 Points to My Credit Score

Skyrocketing Credit Score

My credit score is skyrocketing!

A couple posts ago, I boasted about my above average credit score of 751.

Well, it’s time to gloat again. I just added 12 points to that credit score. Boom. Just like that. All it took was a 10 minute phone call.

What wizardry did I use to get a large boost in score? I asked for a huge credit line increase.

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