[Jims5543]

Go back to 2005, I had no mortgage and the only "debt" I had was my $600 a month Audi lease.


Fast forward to 2007, my business was doing poorly, revenue was about 25% what it was the year before, it was like someone threw a switch. I had no way to anticipate this..... well, I know it was coming I hoped it would be a year or two later.


while this was going on, we, for the first time, were carrying a balance on out AMEX card, normally, we would pay it off every month, whether the balance was 2K or 10K it was paid off every month.

Now we were carrying a balance, our saving grace was our vacation home, we had it up for sale and we stood to make 70K off of it....... the market crashed hard, we got lucky and sold for 40K more than we paid.

While this was going on we paid all we could to AMEX, they saw us carrying a balance and encouraged us to carry more, they increased out credit limit from 20K to 30K to 40K to 55K.......

We parked all our debt on the AMEX acct. . to the tune of 45K.. hell they offered us it.. why not use it?????? Then the house sold, we pad off the AMEX account. Keep in mind we were NEVER late with a payment and paid anywhere from 2K to 15K a month on it depending on the month.

What did AMEX do once the card was paid off, the card that THEY increased the limit on encouraging us to up the balance on???? They dropped the limit from 55K to 2K!!!!

Why???? Because they said we have too much debt.... I have no credit debt, I have no car loans (the Audi is GONE thank god that POS is gone) I have no debt at all except for a mortgage payment and a balance in my saving exceeding six figures.

Yet, AMEX feels I have too much "phantom" debt and cut my credit line to nothing.

To be honest its not a big deal to us, we are in panic mode over the economy and we onyl pay cash for whatever we buy now, we do not go out to eat anymore, we do not spend money anymore, we only save save save for when the bad times come, we are about 1 year away from bad times..... get ready.



In 3-6 months all the credit card companies will be crying that they are hurting, IMHO they brought this on themselves. Good riddance!!



There goes my Friday post.

Have a nice weekend fellas.