Credit card companies are generally thrilled to give you an increase in credit, if they think you’ll use it and not go bankrupt. If you find yourself getting deeper and deeper into debt consider lowering your credit limit. Simply call up the credit card company and ask them to lower the limit on your card. This way you can still have the convenience of a credit card but you’ll have some safe guards to help keep you from going deep into debt.
Of course, the best way to use a credit card is to pay off the balance at the end of each month. With a lower credit limit, it will be easier to pay off the balance. If the maximum you can charge on your card in a given month is $500, that will be a lot easier to pay off than $5,000.
By lowering the credit limit on your credit cards, you won’t be able to use it as much. This self imposed discipline can help you keep more money available to pay off other debts. Not having as much available credit will help make you question your purchases which should help cut down on unnecessary expenses.
By intentionally controlling your credit limit, you can set yourself up to succeed. Keep in mind that the banks and credit card companies make money when you are in debt, so they are going to try to give you as much credit as possible. Since they make money when you are in debt, don’t consider the credit increases they give you to be votes of confidence. They don’t really want you to be out of debt, so they will keep increasing your credit limit and offering other incentives to keep you paying as much interest as possible.