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What are you doing to weather the economic crisis? See the results of this poll.

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Valued Member

Re: What steps are you taking to weather the economic crisis?

Actually I've been doing a budget sheet "before" things got bad.  Now I am re-evaluating my budget and this is what I came up with.

 

1. No more eating out on weekends. Do Exercise instead

2. Don't charge anything if you "can't pay it off "

3. Continue paying down the larger loans and student loans as best I can

4. Wrote to some of my creditors to reduce the credit limits and refused higher credit limits when they were offered to me.

5. Cut my cable bill in half by closing unnecessary channels

 

 

It's hard to do this, cutting back so much, but really at the end of the month I feel better seeing that my statements with this on it "0".

And I am saving again and re-building my IRA.

 

Also as a senior, I am looking for work again in my Nursing field or whatever I can find.

 

 

Message 11 of 36
New Visitor

Re: What steps are you taking to weather the economic crisis?

I question Item 4...

4. Wrote to some of my creditors to reduce the credit limits and refused higher credit limits when they were offered to me.

My understanding is that this will reduce your credit score not improve it.  If your balance on a card is higher than 30% of the limit, your score is hurt.  Therefore a higher limit that is not used is good for improving your score.  I would also accept the higher credit limit when offered; it helps improve score.  Better to have a few cards (less than 6) with higher limits than many with lower limits.

Message 12 of 36
Moderator Emerita

Re: What steps are you taking to weather the economic crisis?


Camishela wrote:

I question Item 4...

4. Wrote to some of my creditors to reduce the credit limits and refused higher credit limits when they were offered to me.

My understanding is that this will reduce your credit score not improve it.  If your balance on a card is higher than 30% of the limit, your score is hurt.  Therefore a higher limit that is not used is good for improving your score.  I would also accept the higher credit limit when offered; it helps improve score.  Better to have a few cards (less than 6) with higher limits than many with lower limits.


Very true. I sure wouldn't do it, never knowing when creditors will decide to lower you again on their end.

But some people do get nervous with higher limits, fearing they'll be tempted into running up their cards. (Not saying that's PP's situation.) It all comes down to how you regard your cards, I suppose. I just think of them as really slow debit cards. If I don't have the money in the bank, I don't use them. They're strictly for convenience and rewards, not delaying reality.

I guess in terms of weathering, we're paying better attention to the leaks in our spending, hunting them down and plugging them. I'm trying to ignore someone who's offering me a job change with way better conditions but much less security, sigh. And we're lucky to live in an area with low, stable housing costs.

We're nervously grateful, I suppose, or possibly we're gratefully nervous.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 13 of 36
Valued Member

Re: What steps are you taking to weather the economic crisis?

Hi:

 

 

 "4. Wrote to some of my creditors to reduce the credit limits and refused higher credit limits when they were offered to me."

 

Question:

My understanding is that this will reduce your credit score not improve it.  If your balance on a card is higher than 30% of the limit, your score is hurt.  Therefore a higher limit that is not used is good for improving your score.  I would also accept the higher credit limit when offered; it helps improve score.  Better to have a few cards (less than 6) with higher limits than many with lower limits.

 

  The letters I sent out to reduce my credit limits were on my loans with Bank of America. Yesterday I received a letter saying they were already had done this during the first black Monday's crash.  The others, such as credit cards, well the limits on them were set when I open them, and they're increasing the line of credit themselves and I do accept it within reason.  It's the Bank loans I don't want higher limits with due to the high interest rate.

Message 14 of 36
New Visitor AM1
New Visitor

Re: What steps are you taking to weather the economic crisis?

  • Paying down remaining debts
  • Pay off credit cards every month
  • Delaying purchases of major items such as furniture
  • Delaying remodeling projects
  • Tweaking the budget to cover increases in the price for- food, gas, heating,
  • going green with electric, replaced incandescent light bulbs to florescent
  • eating out once every two weeks instead of weekly
  • no movie purchases
  • fewer music purchases
  • bag lunches to work
  •  I have not touched the 401k, waiting for upturn.   All regular contributions to the 401 K is allocated to stocks, (might as well buy them cheap).
Message 15 of 36
New Member

Re: What steps are you taking to weather the economic crisis?

I had made the choice to start working on becoming debt free a few years back.  I now, in my

40's have the maturity to make it happen.  Of course I am in the process of buying a home, so when I say debt free, I mean frivilous debt.  Constant checking and renotiating my terms and interest.  I have around 9k in credit card debt with an effective interest of 1.98%, unlimited payback time.  The CC companies hate me, but who cares.  I pay at least triple the amount due religously. I keep my shredder in the living room so before I get comfortable and tempted to look at offers, I drop them in the feeder.

 

I buy only what is needed, look for ways to co-op with friends, ask for a deal or discount on EVERYTHING I purchase.  I also follow the advice of Warren Buffet (of course I use pennies where he uses dollars), subscribing to Drips, buying stocks of companies I know, understand and are a need or people still spend disposable income on.

Message 16 of 36
Valued Contributor

Re: What steps are you taking to weather the economic crisis?

My goal is to buy a house next year, so I:

 

  • Moved in with my daughter to save for the down payment. Not only do I save in rent and utilities, but we never have to pay for sitters because we have different schedules.
  • Even though I PIF my cc's every month, I took all but one out of my wallet and I will rotate them. I find that carrying all of them makes it easier to spend more and harder to keep track of.
  • Starting looking up all the frugal sites and tips...as another form of entertainment (besides pulling fico scores continously...LOL
  • Started drinking water and lemon water vs sodas and other convenience drinks
  • Started taking lunch to work
  • Made the decision to shop consignment stores vs others where possible
  • Was going to get a 2nd job, but decided to work OT at current job because it pays more and I spend less gas!
  • Instead of vacation we made the decision to stay home and everyday while on vacation to do something 'as a family'. Everyone gets to pick something they want to do (within reason).
  • Learning the art of coupons and deals!

 



EQ 817, EX 815, TU 813 (Updated 1/5/18: TU 843

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Message 17 of 36
New Visitor

Re: What steps are you taking to weather the economic crisis?

  • i'm eating out much less.  i'm packing my lunch and bringing it with me to work.
  • i also stopped buying coffee at startbucks or dunkin' donuts.  i make my own coffee at home and bring it with me in a travel mug.
  • i am evaluating everything i buy to make sure it is something i need and not want.
  • i'm creating a new budget and am more commited to stick to it!
  • i'm reading "the money book for the young, fabulous, and broke" by suze orman.  it's really helping me too!!...so much so, that i'm actually posting on myfico.com.  i must be turning a corner. 

Smiley Happy
Message 18 of 36
Moderator Emerita

Re: What steps are you taking to weather the economic crisis?


joulze wrote:
  • i'm eating out much less.  i'm packing my lunch and bringing it with me to work.
  • i also stopped buying coffee at startbucks or dunkin' donuts.  i make my own coffee at home and bring it with me in a travel mug.
  • i am evaluating everything i buy to make sure it is something i need and not want.
  • i'm creating a new budget and am more commited to stick to it!
  • i'm reading "the money book for the young, fabulous, and broke" by suze orman.  it's really helping me too!!...so much so, that i'm actually posting on myfico.com.  i must be turning a corner. 

Smiley Happy


Smiley Very Happy

Welcome to the forums! That's a good book for young people trying to figure all this stuff out from scratch. I gave it to my kids, and they acted offended, but I noticed that after several weeks, they were quoting from it. Smiley Wink
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 19 of 36
New Visitor

Re: What steps are you taking to weather the economic crisis? See the results of this poll!

There are a lot of things I do, not only in an economic crisis, but most of these are habits.

 

Think about if I can run certain errands on the way home from work rather than making special trips.

Don't drive aggressively - saves not only on gas, but also nerves and potentially an accident Smiley Happy

Pay online to save money for the stamps

Make home improvements that pay off long-term (95% efficiency furnace, energy efficient appliances)

Don't run equipment, lights, etc when they are not in use.

When I see a good bargain for things I use on a regular basis, I stock up.

 

Most of all, make sure that I do my best at work every day - with a smile on my face. This helps ensure that I will have a better chance of keeping my job when things get rough.

 

These are just a few...

 

Message 20 of 36