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let me say most of us are sorry to see you in this mess. We don't mean to dump on you. Having your cl chopped out from under you is unfortunate. We suggest you pif the account, because that's the only thing likely to stop the balance chasing. The idea is, if you pif, there's no balance to chase. If you can stop the downward spiral, your scores can recover. Then, if you need a cushion, id suggest trying for a personal loan, rather than use a card account. The interest will likely be less, and it won't kill utilization.I
OP, I'm sorry that you are facing a number of troubles. While I advocate to pay debt in full ASAP, those recommendations don't make sense if someon is at risk of skipping housing payments and covering basic needs: food, medications, utilities, health insurance, etc..
Now, might be a good time to focus on budget, and ensuring you have enough funds to cover basic needs for 6 to 12 months given the inconsistent in employment/income. With a monthly budget and short-term savings number calculated, you're in a better position to determine if you can payoff one or more accounts. If that isn't viable or your income doesn't stabilize, you might have to consider other pathways to address the debt.
Remember, credit doesn't determine your worthiness. Thousands of individuals faced life, career, and financial challenges and in time recovered from each of those hardships wiser and in a stronger financial standing.
If time permits, please consider reading My Money or My LIfe. Life is always happening, and sometimes we need tools to better prepare us for our expected and unexpected needs.
Wishing you the best.
@sakura wrote:If I pay cards off I was told they can also lower limit more. Also all I have is my savings after a layoff and I had to take contract job with no health insurance and a huge pay cut.
I would be surprised if paying your cards off after the cycle closes would reduce your credit limit. It is possible if you pay it ahead of time, that is, before the cycle ends, then it may look like you have a zero balance all the time and the algorithm may reduce your CL. I have two credit cards and neither of them has ever had a bill anywhere near the credit limit, yet my credit limit has never ever been lowered. Now of course with the economy and the coming situation that may change...
@alocksley wrote:
@sakura wrote:If I pay cards off I was told they can also lower limit more. Also all I have is my savings after a layoff and I had to take contract job with no health insurance and a huge pay cut.
I would be surprised if paying your cards off after the cycle closes would reduce your credit limit. It is possible if you pay it ahead of time, that is, before the cycle ends, then it may look like you have a zero balance all the time and the algorithm may reduce your CL. I have two credit cards and neither of them has ever had a bill anywhere near the credit limit, yet my credit limit has never ever been lowered. Now of course with the economy and the coming situation that may change...
They are balance chasing and it is fairly likely that they will reduce the CL or close the card when the card is PIF. That is generally the issuer's goal while balance chasing, reduce, possibly to 0, the risk that we think we have on this card. But in some sense that's going to happen or not no matter what OP does, and it's not as if there is much usable credit if you don't pay.
So, like others, providing you have the funds, my advice is to PIF and let the chips fall where they may. As things improve over time, new cards will be available and you won't be spending money paying credit card interest.